29th May 2017
Tourist coming to India need to spend some more money who are going visit after July 1 GST roll out. Recently according to the new tax rates of GST, any hotel which charges 5000 rupees for the room, which had 12 to 18 percent tax, now it will have to pay 28% tax. The simple thing is that the buyer will have to suffer.
Air-conditioned restaurants and bars will also have to pay tax at 28%. Tourism is the third place in providing employment opportunities in the country. Every sailor who comes to the country stops at the hotel. 28 people behind him get employment opportunities. In such a way, the weight of the tax can be heavy on this industry.
Operators running the Heritage Hotel in the village are concerned especially because the rates of GST are the same. From 5000 rupees per room to five star hotels or villa properties, everyone has to pay tax in a normal way which is unfriendly. Some Businessmen think that India's business can shift to other countries.
Business men are expecting that In India, tourism will be reduced and people's employment will have an impact on them." Tourism, hotels and tour operators are now asking the government to reduce the tax. In a country like France 80 million tourists visit, but there is only 5.5% tax in tourism sector.
Khalid Khan, president of Rajasthan Association of Tour Operators, says: "Come to India is never cheap and we have sold hotel rooms for foreign agents this year." Now, according to the new tax door, the hotel owner will have to suffer the tour operators. Kerala is also a state where tourism is quite common. Tourism was hit after the liquor ban was implemented here and now there is concern in the tourism business by seeing the new tax rates.
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