New GST Rates: Hotel stays and food become cheaper with room rent up to Rs 7500..

With the implementation of new GST rates, hotel rooms costing ₹7,500 or less will become cheaper by ₹525 from Monday.

Hospitality sector leaders said that for the hotel industry, the reduction in Goods and Services Tax (GST) rates from 12 percent to 5 percent without input tax credit (ITC) will support growth.

They stressed that this will increase revenue, encourage investment, and enable hotels to provide better services to guests across the country.

Currently, hotel rooms with daily rents up to ₹7,500 are subject to 12 percent GST with ITC. According to the Hotel Association of India, this reduction will reduce room rents by 7 percent.

Similarly, travelers will also benefit from GST on food. Nikhil Sharma, Managing Director (MD) and Chief Operating Officer (COO) for South Asia, Radisson Hotel Group, told PTI that the simplified tax structure will bring clarity to hotel operators and travelers.

Rahul Macarius, managing director for the Eurasia market at Wyndham Hotels & Resorts, which owns brands like Ramada, said India's travel and hospitality sector is growing strongly and the GST reform has come at the right time.

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