Customers likely to gain as high-end hotels get GST options on dining

The GST Council decided to suitably amend the CGST Act to link GST on restaurant services with actual room tariff provided by the hotel

In a major change for the hospitality industry and in what could be a good news for diners, the Goods and Services Tax (GST) Council has decided to allow high-end hotels to choose between two indirect tax rates for restaurant services provided on their premises.

 

  Starting April 1 next year, according to the GST Council’s decision last week, such hotels will have the option to choose between two GST rates: 5 per cent without Input Tax Credit (ITC) or 18 per cent with ITC, if the value of accommodation rented out exceeds Rs 7,500 per unit a day in