GST rate cut on hotel tariffs is a Deepavali gift for tourism sector: Patel

The GST Council on September 20 slashed the tax on hotel tariffs and some goods with a view to addressing sectoral concerns in a slowing economy. The tax changes came on the heels of the reduction in corporate tax rates to boost private investments.

“The ministry had made the request for reducing the charges or change the GST slab for the tourism sector. The decision taken by the government is even better than what we thought. This is a Deepavali gift for the tourism industry,” Patel said while addressing tourism stakeholders at the India Tourism Mart.

“This, along with the reduction in corporate tax rates, has also helped,” he added. To boost job-creating hospitality industry and tourism, the GST (goods and services tax) on hotel rooms with tariff up to Rs 1,000 per night will be nil. Room tariff between Rs 1,001 and Rs 7,500 per night will attract 12 pc GST as against existing 18 pc.

The minister, when asked about the scope of tourism in Jammu and Kashmir where restrictions are in place since August 5, said from November 1 the region will have a “better season” than the last year. Union territories – Jammu and Kashmir, and Ladakh – will come into existence on October 31.