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FHRAI Welcomes The GST Council’s Decision To Cut Tax Rate For Restaurants To 5 Percent.

10 th Nov 2017

Represents Committee To Look At Seven Key Issues For Both The Hotel & Restaurant Industry

 New Delhi 10th November 2017 : The Federation of Hotel & Restaurant Associations of India (FHRAI), India’s Apex body representing the concerns of Hotels & Restaurants in India welcomes the  GST Council’s decision to cut tax rate for restaurants to 5 percent (without input tax credit).

 A delegation from the industry led by  Mr Garish Oberoi, President FHRAI including Mr Sudesh Poddar, President Hotels & Restaurants Association of Eastern India (HRAEI) &, Mr Pranav Singh Hony. Secretary HRAEI, had earlier met  with the GST Council at Guwahati and requested the Government to either bring down the GST rate on Restaurants to 12% with input credit or at 5% without input credit.

“We are extremely thankful to the Government for making these much required changes in the GST regime. This will help restaurants across India rationalise tariffs.” Further continued Mr Oberoi.

Mr Oberoi had asked the committee to look at seven key issues for both the Hotel & Restaurant industry, namely :

  1. IGST be made available for immovable properties for tourism accommodation such as for hotels, cruises, campsites & for restaurant.
  2. Transaction value & not Declared Tariff should be the basis for rate categorisation of hotels
  3. Lowering the GST on Hotels @ 12%
  4. Treat foreign exchange earnings in tourism services as exports or deemed exports
  5. Hotels & Resorts should be allowed to unbundle their package rates
  6. GST should not be charged on complimentary meals    
  7. Rationalisation of GST on Restaurants at 12% (with input tax credit) from 18% or 5% (without input credit)  

About the Federation of Hotel & Restaurant Associations of India (FHRAI)

FHRAI is the apex body of the Indian hospitality industry representing hotels, restaurants and associates, spanning the length and breadth of our vast country. Founded in 1955 by the legendary hotelier Rai Bahadur M.S. Oberoi, the organisation has diligently built on its glorious legacy and is today recognised as the pre-eminent national voice of our industry and is also proud to have played a seminal role in shaping the growth trajectory of India's vibrant tourism sector. FHRAI enjoys the distinction of the being the third largest Hotel & Restaurant Industry Association in the world.” For further details please visit https://www.fhrai.com/index.aspx



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