Particle.news
Download on the App Store
4 ARTICLES
·
2h ago

Hotel Association Urges ITC Restoration on Sub-Rs 7,500 Room Tariffs After GST Shift

The trade group says the 5% levy without credits is driving up unrecoverable expenses for smaller hotels.

Image

Overview

  • FHRAI asked the government to reinstate input tax credit on hotel rooms priced up to Rs 7,500.
  • The GST on these tariffs was cut to 5% from 12% but the ability to claim input tax credit was removed.
  • The association said about 90% of hotels fall under the sub-Rs 7,500 bracket and now face higher net costs.
  • It warned that unrecoverable expenses on rentals, utilities, outsourced manpower and capital expenditure are weighing on Tier II and Tier III markets.
  • FHRAI also sought a clarificatory circular on compliance and raised concerns over overlapping copyright royalty demands from multiple societies.