GST rate cuts on hotel tariffs govt's Diwali gift for tourism sector: Union Minister Prahlad Patel

The slashing of GST rates on hotel tariffs and the reduction in corporate taxes is the government's Diwali gift for the tourism sector: Minister of Tourism Prahlad Patel

New Delhi:The slashing of GST(Goods and Service Tax) rates on hotel tariffs and the reduction in corporate taxes is the government's Diwali gift for the tourism sector, Minister of Tourism Prahlad Patel said on Monday.

The GST Council on Friday slashed the tax on hotel tariffs and some goods with a view to addressing sectoral concerns in a slowing economy. The tax changes came on the heels of the reduction in corporate tax rates to boost private investments.

"The ministry had made the request for reducing the charges or change the GST slab for the tourism sector. The decision taken by the government is even better than what we thought. This is a Diwali gift for the tourism industry," Patel said while addressing tourism stakeholders at the India Tourism Mart here.

"This, along with the reduction in corporate tax rates, has also helped," he added.

To boost job-creating hospitality industry and tourism, the GST on hotel rooms with tariff up to Rs 1,000 per night will be nil.

Room tariff between Rs 1,001 and Rs 7,500 per night will attract 12 per cent GST as against existing 18 per cent.

Similarly, room tariff above Rs 7,500 will attract 18 per cent GST as against existing 28 per cent.

The tourism mart is being attended by 240 representatives from 51 countries, including Argentina, Australia, Brazil, Canada, China, France, Germany, Italy, Indonesia, Malaysia, Mexico, New Zealand, Norway, Philippines, Poland, UK and USA. They will be shown India's tourist destinations over the next couple of days.

The minister, when asked about the scope of tourism in Jammu and Kashmir where restrictions are in place since August 5, said from November 1 the region will have a "better season" than the last year. Union territories Jammu and Kashmir and Ladakh will come into existence on October 31.