Bhubaneswar: The Centre Wednesday said it will certainly take up the issue of ‘hefty’ GST on hotel rooms tariff in the meeting of its council as it impacts the tourism industry.
This was stated by Rupinder Brar, Additional Director General, Ministry of Tourism.
“The government is sensitive to the needs of the industry and I am sure that the government will be looking at various dimensions and the fact that is impacting tourism,” Brar told reporters on the sidelines of the Odisha Tourism Conclave here.
The ADG’s statement is significant as it came two days after the Tourism Ministers’ Conclave at Kovalam in Kerala, where different states had expressed concern over the high GST rate on hotel rooms and demanded a reduction.
The Kerala conclave, in a unanimous resolution, had expressed concern over the GST Council of India imposing 28 per cent Goods and Services Tax on hotel rooms tariff over Rs 7,500 and 18 per cent tax on rooms with tariffs between Rs 2,500 and Rs 7,500.
This tax rate was high compared with other countries, it had stated.
Brar said the government will study how much it (GST rate) is impacting the industry. “I am sure they (GST Council) will take a decision which is not only in the interest of the industry, but also the country as a whole,” she said.
The ADG said the ministry will represent the issue of GST, which has been brought to its notice. “We are hoping that the Council will look at the logic that we shall be representing,” she said.
Earlier, Odisha’s tourism minister JP Panigrahi, state tourism secretary Vishal Dev and Hotel and Restaurant Association of Odisha (HARO) chairman JK Mohanty had expressed concern over the high GST rate on the hotel rooms while speaking at the meet.
(PTI)