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Thursday, 06 July, 2017, 13 : 00 PM [IST]

90% of classified hotel rooms in the country will be under 18% GST: Rashmi Verma

Rashmi Verma, Secretary Tourism, Govt of India said that 90% of the classified hotel rooms will have a tax incidence of 18% or below in the new GST regime. She was speaking at a GST workshop organised by Hotel and Restaurant Association of Northern India.

She said that only 10% of the hotel rooms will fall in the highest slab of 28%. She asked industry stakeholders to try and bridge the gap between declared and actual tariff and also try to unbundle all additional services from the tariff to remain in the threshold bracket of 18%.

She said that it is a misconception that taxes have gone up with GST. In fact, taxes have come down, except few states where luxury and service tax were higher than the national average. She asked industry stakeholders to help in communicating to consumers that taxes have come down to remove the misconception. Verma also added that any transition will have upheavals.

The tourism ministry has set up a GST desk to clarify any queries. The cell will work as a bridge between GST working group and the industry.

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