Originally Posted by
Travelmic
My knowledge was that the previous taxes were making around 18%. So for the hotels above 7500 rs, the increase would be 10% (new GST: 28% vs. old taxes 18%).
it wasn't exactly 18% of the room rate....it was a bit more complicated than that....
the vat was 1.25%, the service tax was 8.4% & the luxury tax was 10%....but the luxury tax was calculated on
rack rate....
so lets suppose the room rate was inr 7.5k & the rack rate of that room was inr 12k....so all taxes combined would come to inr 1,923.75 which would be roughly 26%....
it would differ from room to room depending on the rack rate but at the end of the day the places that charged luxury tax would end up charging roughly between 25-30% of your eventual room rate....