Impact of GST
Jun 24, 2017, 1:01 pm
#2
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28% on hotels charging >5000 INR/night, 18% on a/c restaurants. Enjoy!
http://economictimes.indiatimes.com/...w/58757234.cms
http://economictimes.indiatimes.com/...w/58757234.cms
Jun 24, 2017, 2:14 pm
#3
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28% on hotels charging >5000 INR/night, 18% on a/c restaurants. Enjoy!
http://economictimes.indiatimes.com/...w/58757234.cms
http://economictimes.indiatimes.com/...w/58757234.cms
I anticipate some creativity from businesses. Restaurants that split into a food selling business and into a nearby seating business. Hotels that lower their rates but then charge for compulsory "incidentals" like getting electricity in the room, sheets, maid service, and so on.
Jun 24, 2017, 6:49 pm
#4
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28% on hotels charging >5000 INR/night, 18% on a/c restaurants. Enjoy!
http://economictimes.indiatimes.com/...w/58757234.cms
http://economictimes.indiatimes.com/...w/58757234.cms
Incidentally I recall reading that the tax rates for hotels priced up to INR 7,500 will be 18% - is that correct?
Jun 26, 2017, 10:33 pm
#5
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if you take away the luxury tax then the taxes amount will pretty much stay the same as it was before....
Jul 2, 2017, 4:05 pm
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Jul 3, 2017, 4:30 am
#7
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28% on hotels charging >5000 INR/night, 18% on a/c restaurants. Enjoy!
http://economictimes.indiatimes.com/...w/58757234.cms
http://economictimes.indiatimes.com/...w/58757234.cms
Jul 3, 2017, 6:47 pm
#8
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I just checked rates for a few SPG hotels around Delhi. The 4P Delhi Airport correctly charges 9% GST onlyon a base rate of INR 5,700 and the Westin Gurgaon correctly charges 28% GST only on a base rate of INR 8,100.
Contrary to this, the Park New Delhi charges 15% Luxury Tax on a Rack Rate of Rs 5,999 + "Krishi Kalyan" tax of 0.3%
All these were for stays in October!
PS. What happens to F&B charges - are these matched to the GST rates applicable to the rooms at the property? If so, what happens if the hotel has some rooms below the INR 7,500 slab and other rooms above that level? So what rate do you pay for a cup of coffee at the restaurant?
Contrary to this, the Park New Delhi charges 15% Luxury Tax on a Rack Rate of Rs 5,999 + "Krishi Kalyan" tax of 0.3%
All these were for stays in October!
PS. What happens to F&B charges - are these matched to the GST rates applicable to the rooms at the property? If so, what happens if the hotel has some rooms below the INR 7,500 slab and other rooms above that level? So what rate do you pay for a cup of coffee at the restaurant?
Jul 4, 2017, 1:46 am
#9
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F&B should get the 18% like A/C restaurants? Here in Germany we also have a plethora of different VAT rates for different services, the hotels split it all out in line items that all get different VAT rates.
Jul 5, 2017, 3:06 am
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Jul 5, 2017, 3:32 am
#11
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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....
Jul 5, 2017, 8:20 am
#12
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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....
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....
very good explanation.
Are tourist have to pay more than Indian residents for hotels and other things?
Jul 5, 2017, 8:51 am
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@Keyser
very good explanation.
Are tourist have to pay more than Indian residents for hotels and other things?
very good explanation.
Are tourist have to pay more than Indian residents for hotels and other things?
Jul 6, 2017, 5:20 pm
#14
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Is the new VAT applied on rack or actual rates - in Delhi and elsewhere?
Jul 7, 2017, 12:48 am
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for example, lets supposed the rack rate for a particular room is inr 10k but the hotel is offering that room for inr 5k....the highest rate bracket of 28% will apply (because the rack rate is over inr 7.5k) but will only be charged on the room rate which is inr 5k....