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28% hotel tax band to be ... disbanded ?

28% hotel tax band to be ... disbanded ?

Old Sep 21, 19, 12:11 am
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28% hotel tax band to be ... disbanded ?

I understand the 28% tax band on rooms with a base rate above INR7500 is to be reduced to18%, and the next band (1000-7500) will be 12%.

Can anyone confirm this, and when it might kick in?
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Old Sep 21, 19, 5:12 am
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It will go in to effect from October 1, 2019.

https://timesofindia.indiatimes.com/...w/71223934.cms

You will be entitled to the lower GST rate even if you book a non prepaid hotel reservation today for a stay on or after October 1, 2019.
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Old Sep 23, 19, 8:49 am
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just in time for me as well....i'm holding an event at a bonvoy property soon where i'm booking 70+ rooms for 2 nights each....this is going to save me a considerable amount....
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Old Sep 24, 19, 3:32 am
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Now now, thats not fair... the country operates on the fact that those who live in 'luxury' pay for GoI
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Old Sep 26, 19, 8:13 am
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Originally Posted by Keyser View Post
just in time for me as well....i'm holding an event at a bonvoy property soon where i'm booking 70+ rooms for 2 nights each....this is going to save me a considerable amount....
I'm expecting hotels to jack up their room rates since the hotels know what they were able to charge customers inclusive of the 28% tax. In other words, I expect much of this tax break to eventually be a tax break for hotels that mostly doesn't get passed onto hotel customers.
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Old Sep 27, 19, 1:22 am
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Originally Posted by GUWonder View Post
I'm expecting hotels to jack up their room rates since the hotels know what they were able to charge customers inclusive of the 28% tax......
What a cynic!!

As though hotels would ever think of doing such a thing
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Old Sep 27, 19, 9:36 am
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Originally Posted by GUWonder View Post
I'm expecting hotels to jack up their room rates since the hotels know what they were able to charge customers inclusive of the 28% tax. In other words, I expect much of this tax break to eventually be a tax break for hotels that mostly doesn't get passed onto hotel customers.
keep in mind though that the hotel industry was hurting because of the 28% tax & often were forced to keep their room rates below inr 7.5k to fill up the rooms....

while they may be able to take some advantage of this situation, its shouldn't be as rampant as one might assume....
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Old Sep 27, 19, 4:02 pm
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Originally Posted by IAN-UK View Post
What a cynic!!

As though hotels would ever think of doing such a thing
I consider myself a realist who expects profit-seeking hoteliers (corporate or individual) to seek to enhance their profits. That means not entirely foregoing an opportunity to take from the part of the (room cost) pie that the government is willing to give up to the profit-seeking hoteliers.
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