Hotels seek clarity on applicability of new tax on their rates

No clarity if GST will apply on published ones for rooms or price at which it is sold to consumers

The domestic hotel sector, which follows a dynamic pricing policy to sell rooms and offer discounts from time to time, is not clear whether the goods and services tax (GST) rates will apply on published rates of rooms or that at which it is sold to consumers.
 
“Room rates are dynamic and have an element of seasonality. Ideally, tax should be chargeable on the rate at which consumption takes place. We hope the industry associations will get clarity from the authorities,” said Raj Rana, chief executive officer (South Asia) at Carlson Rezidor, which operates hotels under brands Radisson and