Mr Rishi Puri, VP, Lords Hotels & Resorts on GST:
“Post successful initiatives like Make in India, Swachh Bharat and Startup India, we were hoping for a more reformative GST that would have rationalised the tax structure and made India a more competitive tourism destination. Unfortunately, the recently announced GST rate for hotels will do just the opposite. By increasing the rate to 28 per cent for mid-to-high class hotels priced above Rs.5000, inbound tourism will take a hit by at least 10 per cent. More ironic is the zero tax on hotels with tariffs of Rs.1000 or below. The signal that is being sent out is, India would prefer only back-packers and for those with more money spends should look for other destinations. As it is, India as a destination is more expensive than countries like Malaysia, Thailand, Vietnam, and Cambodia among others,” says Mr Rishi Puri, Vice President, Lords Hotels & Resorts.
“We humbly request the Government to save the inbound tourism and reconsider the GST for hospitality. A standard GST of 12 per cent across all categories of hotels will help maintain parity and achieve our beloved Prime Minister’s dream of making India one of the top destinations for the International traveller,” concludes Mr Puri.