The Hotel and Restaurant Association of Eastern India (HRAEI) has been consistently demanding a revision of GST rate for the hospitality sector. Today the industry association is quite happy with the announcement of 5% GST without Input Tax Credit (ITC) for all non-A/C and A/C restaurants by the Finance Minister Mr.ArunJaitley after the 2 day long GST Council meet in Guwahati.
Mr.SudeshPoddar, President, Hotel & Restaurant Association of Eastern India (HRAEI) said, “We are very happy with new GST slab announcement for restaurant. We proposed revise the existing GST rates and change it to a 12% GST with ITC or 5 % GST without ITC. Our proposals were considered with due importance and this announcement is a big relief for the hospitality sector.”
He also added, “Our demand for a reduction in GST for room rent above Rs. 7500/- per day was also fulfilled. It has been reduced to 18% GST with ITC from 28% GST. ”
Recommendation from HRAEI was as follows:
HRAEI proposed to reduce the 28% GST slab to a flat 18% for room tariffs greater than Rs. 7500/-. The budget category of rooms between Rs. 2499/- and Rs. 7400/- per day is now paying a GST of 18%. The association strongly opposed to this and demanded a revision and requested to the council to make it 12% to protect the interest of a large group of customers.