10th October 2017
To All Members
Sub: GST on Hotel Room Rent
On 11th July after the GST was announced, IATO had written to FHRAI and HAI that many individual and chain hotels are changing their special rate/tariff, which were below Rs. 7500 to above Rs. 7500 so as to get ITC @ 28% slab.
With this practice, the cost of room tariff for the consumers, will go very high with 28% GST added on it. However, tour operators send their quotation 6 to 12 months in advance to their foreign counterparts and they will not accept this hike in room tariff.
We also requested FHRAI and HAI to advise all hotels to maintain the same tariff and to pass ITC benefit to the tourism industry who will in turn pass on to the end consumer.
A copy of the letter received from President, HAI is attached. On the basis of this letter, you may contact the hotels directly.