GST makes India inhospitable, says tourism sector

Owners of hotels, restaurateurs and tourism-related facilities disappointed with high rates, say GST is unviable

The rates announced by the Goods and Services Tax Council on Friday has comes as a shocker to the hospitality industry. Four tax slabs of 5%, 12%, 18% and 28% have been fixed for services including telecom, insurance, hotels and restaurants.

Expressing disappointment, the hospitality sector said the rates are too complex, high and uncompetitive, and said they will be approaching Union Finance Minister Arun Jaitely and Union Tourism Minister Mahesh Sharma for a review of the rates. The GST Council announced that non-AC restaurants will charge 12% GST on food, AC restaurants and those with liquor licence 18% per cent, and five star hotels will charge a GST of 28%.

Dilip Datwani, president, Hotel and Restaurant Association, Western India (HRAWI) told The Hindu, “The government should realise that taxes in neighbouring countries like Myanmar, Thailand, Singapore, Indonesia range between 5% and 10%. We cannot afford to have this complex and high-rate GST. This is simply not viable. Tourists will simply skip India.”

with thanks : The Hindu : LINK : for detailed news