GST negative for inbound: ICPB

Chander Mansharamani, Vice Chairman, ICPB, shared that the GST slabs announced for hospitality industry will negatively affect inbound tourism immediately, deterring tourism especially when the country is in competition with neighbouring countries. “The MICE industry will be terribly hit as most of the convention facilities are only available in 5-star hotels which have room rates of Rs. 5000 or above. The high tax rate of 28 per cent will negatively impact conventions and conferences in the pipeline as well. I feel scope for manipulation has been left for the hotels where one can charge Rs. 4990 for a room and pay only 18 per cent instead of 28 per cent. Also there is confusion whether the tax will be charged on rack rate, published rate or on the negotiated rate. The whole purpose of one tax one India is defeated,” he added.