Hotel & Restaurant Associations submit suggestions to FM ahead of GST council meet

The Federation of Hotel & Restaurant Associations of India (FHRAI) on Wednesday said that it has submitted a representation to the Finance Minister, Nirmala Sitharaman ahead of the GST council meeting scheduled on 28 May. The industry body has requested the council to include key policy measures required to revive the hospitality industry.

“We are requesting for the threshold limit for charging GST at 18 percent on hotel room tariffs be raised from the present Rs 7,500 to Rs 9,500 for bringing parity of rates between the rupee and the dollar. Back when the threshold was fixed at Rs 7,500, the exchange rate of dollar per rupee stood at Rs 64, but today the same has reached Rs 73 per dollar.

Also, the threshold limit for zero GST for hotel rooms should be raised from the present Rs 1,000 to Rs 2,000 per room per day. The move will boost the lower budget segment, thus encouraging domestic travel and promoting tourism in a big way,’’ says Gurbaxish Singh Kohli, Vice President, FHRAI.

Kohli urged FM to allow valid GST hotel bills of any state other than the home state of the individual assessee paid for by digital mode exempt under section 80C for an additional amount of Rs 50,000/ will encourage citizens to travel within India which will further give a much-needed impetus to hotels as well as ancillary industries.

Among other suggestions, the body requested the GST Council to remove GST for rent payments for those who are not eligible to claim the input tax credit.

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