Budget 2024: Tourism industry seeks uniform 12 per cent GST rate on hotels
Budget 2024: To boost domestic and inbound tourism, the travel and tourism industry has requested the government to consider a uniform 12 per cent GST rate on hotels in the upcoming Budget for 2024-2025. Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23.
'Will help simplify compliance processes'
Online travel services provider MakeMyTrip co-founder and Group CEO Rajesh Magow said that a uniform GST rate will help simplify the compliance processes.
"The tiered GST based on hotel room tariffs can lead to price disparities as hotels adjust room rates based on demand and peak season rates. For example, a room night costing Rs 10,000 falls under the 18 per cent GST rate, while an off-season rate of Rs 7,000 falls under the 12 per cent GST rate. We urge the finance minister to consider a uniform GST rate of 12 per cent on hotels in the Union Budget FY25. This will help simplify the compliance processes," Magow said.
He suggested that the government should eliminate the disparities between e-commerce operators and e-commerce suppliers in the domestic market. "For example, currently, a customer pays a 5 per cent GST (goods and services tax) charge when booking a non-AC bus through an e-commerce platform. This charge is zero for a direct booking from a bus operator, irrespective of whether it is done in online or offline mode," he added.
