Hoteliers want GST impact to be under control



Impact of GST is something that hoteliers want government to keep under control.

“Our neighbouring south-east Asian countries like Thailand and Malaysia have a GST of 7 and 6 per cent respectively. In contrast, GST applicable for hotels in India amounts to a whopping 25 to 30 per cent. Our industry is competing with a difference of roughly 20 per cent while matching with the global service amenities and requirements. Also, we hope that the government considers granting infrastructure status to hotels with a project cost of INR 25 crore as against the present INR 250 crore,” said Bharat Malkani, President, FHRAI & Hotel and Restaurant Association of Western India (HRAWI).

On policy initiatives, FHRAI has suggested increasing the threshold limit of INR 25,000 to INR 1,00,000 for payments to hotels and restaurants against bills raised and to allow bank loans up to INR 10 crore per unit or borrower extended to hotels and restaurants and be reckoned as ‘priority sector lending’ within the RBI guidelines.


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