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GST Council cuts tax rate on hotel room tariffs to help tourism

NEW DELHI: The GST Council on Friday cut tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector. The GST (goods and services tax) rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12 per cent from the existing 18 per cent, officials attending the GST Council meet here said.

Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent.There will be no GST on room tariffs of below Rs 1,000 per night. Commenting on the decision, Sanjay Sethi, CEO, Chalet Hotels said the reduction would give a major fillip to the hospitality and tourism industry and make hotels more competitive globally. "For companies like Chalet, reduced taxation helps us focus our efforts on key aspects like fresh investments in portfolio expansion, job creation and creating sustainable green hotels," he said.