Shares of hotel and hospitality companies advanced on anticipation of reduction in Goods and Services Tax (GST) for five-star hotels.
Meanwhile, the S&P BSE Sensex was up by 133.59 points, or 0.37% to 36,614.68.
Taj GVK Hotels & Resorts (up 7.69%), Hotel Leela Venture (up 6.12%), Indian Hotels Company (up 3.27%) and EIH (up 0.57%) jumped. Lemon Tree Hotels slipped 0.27%.
According to the media reports, GST council, in its next meeting, could rationalize rates for five-star hotels to provide relief to the hospitality industry. The 37th GST council meeting is scheduled to be held on Friday, 20 September 2019, in Goa.
Currently, five-star hotel rooms with a tariff of Rs 7,500 per night and above attract a GST rate of 28%.
The fitment panel, comprising Central and State officials, has reportedly recommended cutting the GST rate on luxury hotel category from 28% to 18%, or increasing the room tariff threshold from Rs 7,500 to Rs 10,000 per night.
Powered by Capital Market - Live News