GST implementation

India’s hospitality, travel industry expect initial problems

A Monitor Desk Report 03 Jul, 2017  |    -      +
NEW DELHI: India’s hospitality and travel industry players expect teething issues to crop up at least in the first few months of GST implementation but are not unduly worried, expecting support from government.

Travel services firms said the "sheer complexity" in GST compliance and the filings required at multiple levels will involve a substantial increase in effort and time, according to a news agency of India.

The hospitality players also want the government to put only hotel rooms with tariffs of Rs 10,000 per night and above in the top tax bracket of 28 per cent in the GST regime.

"During the implementation phase, we are expecting issues to crop up, especially in the first three months, but we are not unduly worried about it as the government is expected to help us resolve them," Dilip Datwani, President, Hotel and Restaurant Association of Western India (HRAWI) told a news agency.

Garish Oberoi, Vice President, Federation of Hotel and Restaurant Associations of India (FHRAI) said 28 per cent GST for hotel rooms with tariff of Rs 7,500 per night and above is very steep.

He asked the government to keep 28 per cent tax only on rooms with tariff of Rs 10,000 per night and above.

"After waiting and learning from what happens to the input cost, we will be altering our prices in approximately a month's time," Riyaaz Amlani, President, National Restaurant Association of India (NRAI) said.

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