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Hoteliers Call for GST Reform Under New Government

Mumbai: As the third term of Prime Minister Narendra Modi’s government begins, the Hotel and Restaurant Association of Western India (HRAWI) is urging a reevaluation of the GST structure for food and beverages in hotel restaurants. Currently, GST rates for F&B are linked to room charges exceeding ₹7,500, creating discrepancies.

‘In its last term, the NDA government focused heavily on tourism development. Hotels and restaurants play a crucial role in this growth and need equal attention,’ said Pradeep Shetty, President of HRAWI. ‘Any disparity between the two sectors will hinder our goal of welcoming 100 million tourists by 2047 and achieving a USD 3 trillion tourism economy.’

HRAWI advocates for uniform GST rates for all restaurants, whether inside hotels or standalone, to ensure fairness and stability in the industry. They propose de-linking GST rates from room charges to promote fair competition and sustainability.

‘We congratulate and welcome the newly elected Union Government and are optimistic about the future of tourism and hospitality. With the right focus and policies, India can become a tourism haven for both domestic and international travellers, significantly boosting economic growth,’ Shetty stated.

Shetty also emphasised the need for streamlined regulatory processes to enhance the Ease of Doing Business. Simplifying license procurement, reducing bureaucracy, and clarifying regulations will foster growth and innovation in the sector.

‘The NDA government previously put significant emphasis on developing tourism infrastructure. Hotels and restaurants are vital to this progress and deserve equal attention,’ Shetty added. ‘We urge the government to continue developing tourist circuits, heritage sites, and transportation networks to enhance accessibility and visitor experience.’

The HRAWI’s call to action aims to align the hospitality industry’s growth with the broader goal of making India a premier global tourism destination.

Monika Shanmugam