Travel Industry Calls for Uniform GST Rate to Boost Tourism in Upcoming Budget

The travel and tourism industry is urging the government to implement a uniform 12 per cent GST rate on hotels to boost domestic and inbound tourism. Industry leaders also call for tax incentives for eco-friendly practices, infrastructure status for investments, and simplified GST rates to make tourism more affordable and competitive.

The travel and tourism industry on Wednesday appealed to the government for a uniform 12 per cent GST rate on hotels in the upcoming Budget for 2024-2025 to enhance domestic and inbound tourism.

Currently, tiered GST based on hotel room tariffs creates price disparities, prompting hotels to adjust rates according to demand. A room night costing Rs 10,000 falls under the 18 per cent GST rate, while an off-season rate of Rs 7,000 is charged a 12 per cent GST rate.

Rajesh Magow, co-founder and Group CEO of MakeMyTrip, urged the finance minister to consider a uniform GST rate of 12 per cent on hotels in the Union Budget FY25, simplifying compliance processes for the sector.

(With inputs from agencies.)