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Monday, 19 June, 2017, 11 : 30 AM [IST]

GST Council raises hotel room tariff threshold to INR 7,500

Taking into account recommendations from both the private industry associations as well as Ministry of Tourism, the GST Council has decided to raise the hotel room tariff threshold for highest tax rate of 28% from the earlier decided INR 5,000 to INR 7,500.

With this, hotels charging a tariff between INR 2,500 and INR 7,500 will now invite only 18% GST.

Announcing the upward revision at the conclusion of the 17th GST council meeting in Delhi, Arun Jaitley, Union Finance Minister has acknowledged demands from various quarters including state governments of Rajasthan and Goa for raising the threshold of hotel tariff.

The Tourism Ministry had earlier asked for raising the threshold hotel tariff to INR 10,000.
 
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