- Hotel operators are facing a challenge due to the uneven goods and services tax (GST) structure.
- Standalone restaurants charge a uniform GST of 5%, while hotel restaurants charge 18% if the room tariff exceeds ₹7,500.
- Hoteliers argue that this tax discrepancy is leading to a loss of restaurant customers.
- The industry is pushing for a uniform GST rate of 5% for all dining establishments.
- Hotel guests are increasingly ordering food from outside delivery services.
- The current GST model puts hotel restaurants at a competitive disadvantage.
- Mid-market hotels are particularly affected as customers are price-sensitive.
- Hoteliers argue that the initial GST framework may have been based on the assumption that hotel clientele were less price-conscious.
- The current tax model is unsustainable and in need of reform.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
