Maharashtra starts registering hotels to accord industry status

The hospitality sector is a critical part of the tourism industry. COVID-19 has had a detrimental impact on Maharashtra, and the state government has been taking concrete steps to revive the tourism industry. In this regard, the Maharashtra government had announced that from 1 April 2021, hotels in the state registered with the Union Ministry of Tourism to be charged an industrial rate for electricity, seed fee, water tax, property tax, development tax, increased carpet area index, and non-agricultural tax. Hotels that are not registered with the Union Ministry of Tourism will be charged tax at the industrial rate only after meeting the stipulated criteria for attaining basic minimum standards.

The state government also established an expert committee for this cause and also ensured that the process of meeting the criteria is completed within the duration of two months. Following that, hotels that meet the conditions for the online application process are levied taxes and fees at the industrial rate. The state government issued this decision in compliance with the approval given at the cabinet meeting on 5 November 2020.

The mechanism in place is assisting in the growth of hospitality businesses by providing industry status in a fast and effective manner, as well as promoting sustainable practices.

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