GST Cut: Hoteliers, foodies feel achhe din are here

  • | Sunday | 12th November, 2017

Like Govil, hoteliers in Indore feel that the benefits from cut in GST will certainly trickle down to the customers. Tops players in the hospitality business feel that for a city of foodies like Indore, the amendment is likely to rejuvenate business and also make the customers happy. He said that the hospitality sector was seeing a bullish trend. The GST council has brought in the changes looking at woes hotels and restaurants had to deal with since implementation of GST from July 1." (By:Mahmudul.Hasan@timesgroup.com)INDORE: The hospitality sector expects the tables to turn with GST council 's decision to levy a uniform 5 per cent tax on all AC and non-AC restaurants.

(By:Mahmudul.Hasan@timesgroup.com)INDORE: The hospitality sector expects the tables to turn with GST council 's decision to levy a uniform 5 per cent tax on all AC and non-AC restaurants. Tops players in the hospitality business feel that for a city of foodies like Indore, the amendment is likely to rejuvenate business and also make the customers happy."It will definitely catalyze business growth. Procurement cost will come down and there will be more profit while the customers will also heave a sigh of relief," said Marriott International vice-president (South Asia) Neeraj Govil , on the sidelines of inauguration of Indore Marriott Hotel. He said that the hospitality sector was seeing a bullish trend. "We are confident that the hotel business will thrive in Indore.The reduction in GST is all likely to assist the growth," he said. Like Govil, hoteliers in Indore feel that the benefits from cut in GST will certainly trickle down to the customers. "From a customer's point of view, it's a very good move. Now they have to pay even less tax than pre-GST era, which was around 14.5 per cent. But we the participants of the sectors are still apprehensive about how things will pan out as we may have to absorb the credit," Grand Bhagwati Palace co-owner Rajesh Mehta told TOI.The cut in GST excludes 5- star hotels. It also does not apply to restaurants operating inside hotels with tariffs of Rs 7,500 and above and outdoor catering, which will continue to be charged at 18% with the benefit of input tax credit.As of now, a 12 per cent GST on the food bill is levied in nonAC restaurants and 18 per cent in air-conditioned ones. The manner in which GST was introduced had caused a lot of uncertainty in the sector, claim hoteliers. Learning from the experience, some of them have decided to adopted a wait-andwatch policy. Rahul Joshi , general manager of Radisson Blu said, "We expect the mood to be positive one. Let's see how it's implemented. The GST council has brought in the changes looking at woes hotels and restaurants had to deal with since implementation of GST from July 1."

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