New Delhi: Shares of hotel companies zoomed up to 20 per cent on Monday after the GST Council reduced tax rate for hotel room tariffs.
The scrip of Taj GVK Hotels & Resorts jumped 19.98 per cent and Royal Orchid Hotels advanced 16.30 per cent on the BSE.
Among others, Indian Hotels Company zoomed 8.20 per cent, ITC rose 6.95 per cent and Hotel Leela Venture advanced 3.59 per cent.
Post market hours on Friday, the GST Council reduced tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector.
The GST (goods and services tax) 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 per cent.
Similarly, the tax on rooms with tariff above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent.
There will be no GST on rooms with tariffs below Rs 1,000 per night.
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