GST of 28% now applicable on hotels charging Rs 7500+ tariff

The Goods and Service Tax (GST) Council has considered revision of tax on hotel rooms and decided that while those in the range of Rs 2,000-Rs 7,500 a day tariff would face 18 per cent tax, rooms with daily tariff above Rs 7,500 would be taxed at 28 per cent. This comes as a slight relief for the hospitality and travel industry, especially in comparison with the initial rate of 28 per cent being levied for hotels charging over Rs 5000 per night. However, Arun Jaitley, Union Finance Minister, has said that the GST on restaurant service in 5-star hotels would attract 18 per cent tax.