Jai Ram announces GST cut on hotel tariffs to boost tourism

Chief Minister of Himachal Pradesh Jai Ram Thakur has said the recent economic reforms, including lowering of Goods and Service Tax (GST) on rooms tariffs, announced by the Centre will benefit hoteliers across the state, especially Shimla, Kullu and Manali, and subsequently spur tourists’ inflow in the state.

The GST Council has decided to lower GST rates on hotel tariff and outdoor catering, giving a boost to the hospitality sector. The GST rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12 per cent from the existing 18%. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent. There will be no GST on room tariffs of below Rs 1,000 per night. Besides, the rate on outdoor catering has also been decreased from 18 to 5 per cent.

Addressing a press conference here, the chief minister said the decision will directly benefit Himachal Pradesh and boost tourism. “The decisions have been appreciated by the industrialists and hoteliers at state, national and international level,” the chief minister said.
There are as many as 3,084 registered hotels, 1,654 registered homestays and nearly 44,552 rooms having an average occupancy of 30 per cent in Himachal.