GST: Mass and mid-market hotels set to benefit

GST exemption for small hotels and lower tax for budget hotels are welcome steps

The goods and services tax (GST) is finally in force. While the new tax regime will ultimately deliver what it set out to do — establish a uniform tax, simplify collection, bring in greater transparency and revenues and facilitate ease of doing business —it is not without hiccups. 

For budget hotel rooms charging less than Rs 1,000, zero per cent GST is most welcome. For small hotels offering rooms in the Rs 1,000 to Rs 2,499 bracket, too, the 12 per cent GST slab is reasonable. These tax rates will ensure that small hotels can continue upgrading room quality