ETV Bharat / business

New GST Cuts to Boost Tourism, But Higher Taxes on Premium Stays May Offset Benefits for Some

The new GST rate of 5 per cent for rooms below Rs 7,500 per night directly reduces the cost of staying in hotels.

New Delhi: Tourism sector experts on Friday said the reduction of GST rates from 12 per cent to 5 per cent will only benefit tourists who book small and medium hotels under the room rent of Rs 7,500 per day.

However, above this amount, the customers have to pay an additional 18 per cent tax on each room rent and food in the hotels.

Explaining about the new rate and its effects, Rajnish Kaistha, senior vice president of the Indian Association of Tour Operators (IATO), told ETV Bharat, “There is a mixed response in the industry as the hotels below Rs

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