The FHRAI has written to the Finance Minister – Nirmala Sitharaman to enhance the threshold limit for zero GST for hotel room tariffs from the present INR 1,000/- to INR 2,000/- per room per day. The Association has stated that the move will boost stays in the lower budget segment, which in turn will encourage more domestic travellers to venture out and thereby give tourism sector the much required boost. Increasing the threshold limit on zero GST will give hotels a chance to attract more tourists, thus increasing the chance of generating slightly better revenues. This could result in a multiplier effect for the Hospitality as well as the Tourism industry.
“There are quite a few budget hotels that offer accommodations in the INR…