The Federation of Hotels & Restaurants association of India (FHRAI) welcomes the GST Council’s decision to cut tax rate for restaurants to 5 percent (without input tax credit).
A delegation from the industry led by Garish Oberoi, President FHRAI including Sudesh Poddar, President Hotels & Restaurants Association of Eastern India (HRAEI) and Pranav Singh, Secretary, HRAEI, had earlier met with the GST Council at Guwahati and requested the Government to either bring down the GST rate on restaurants to 12 per cent with input credit or at 5 per cent without input credit.
“We are extremely thankful to the Government for making these much required changes in the GST regime. This will help restaurants across India rationalise tariffs,” Oberoi said. He had asked the committee to look at seven key issues for both the Hotel & Restaurant industry, namely : IGST be made available for immovable properties for tourism accommodation such as for hotels, cruises, campsites & for restaurant; transaction value & not Declared Tariff should be the basis for rate categorisation of hotels; Lowering the GST on Hotels @ 12 per cent; treat foreign exchange earnings in tourism services as exports or deemed exports; hotels & resorts should be allowed to unbundle their package rates; GST should not be charged complimentary meals and rationalisation of GST on Restaurants at 12 per cent (with input tax credit) from 18 per cent or 5 per cent (without input credit)