HRAWI appeals to GST Council and PM Modi for uniform 5% GST rate on hospitality and tourism services

Tourism contributes nearly 5% to the nation’s GDP and is among the largest generators of jobs, and continues to be disadvantaged by high GST rates compared to its South-East Asian competitors.

Mumbai: The Hotel And Restaurant Association (Western India) has appealed to Prime Minister Narendra Modi and the GST Council for a uniform 5 per cent GST rate on hospitality and tourism services to boost Indian tourism and global competitiveness.

Tourism contributes nearly 5 per cent to the nation’s GDP and is among the largest generators of jobs, and continues to be disadvantaged by high GST rates compared to its South-East Asian competitors including Thailand, Indonesia, Singapore, Vietnam and Malaysia, according to HRAWI.

“For this, we have requested the Government to consider a uniform 5 per cent GST rate with Input Tax Credit (ITC) across all hospitality and tourism services, including restaurants, bakery, namkeens, outdoor/indoor catering and allied services to simplify compliance, improve affordability and enhance competitiveness for Ease Of Doing Business,” said Pradeep Shetty, spokesperson, HRAWI.

“Additionally, we have recommended delinking GST on F&B services from room tariffs and to regularise past GST payments on an ‘as is basis’ to resolve long-standing industry challenges. These measures will not only boost tourism inflows but also align with the Prime Minister’s vision of Viksit Bharat 2047, by positioning tourism as a key growth engine, cultural ambassador and source of inclusive employment. Rationalisation of GST is a vital step towards unlocking the full potential of India’s hospitality sector and ensuring its rightful place on the global stage,” he added.