Select hotel & restaurant shares gain on GST rate change

Royal Orchid Hotels hit a 52-week high of Rs 156, up 16%, and Speciality Restaurants rallied 8% to Rs 127 on the BSE in intra-day trade

Shares of hotels & restaurant companies rallied up to 16% on the BSE in intra-day trade in otherwise subdued market after the Goods and Services Tax (GST) Council decided to reduce the tax rate for all restaurants, barring those in luxury hotels, to 5%, without any input tax credit.

Restaurants in hotels with room tariff of Rs 7,500 and above per day will attract 18% GST with full input tax credit.

Among the individual stocks, Royal Orchid Hotels hit a 52-week high of Rs 156, up 16%, and Speciality Restaurants rallied 8% to Rs 127 on the BSE