Mumbai: In light of the recent re-election of the Narendra Modi administration, the Hotel and Restaurant Association of Western India (HRAWI) has called for a critical reassessment of the Goods and Services Tax (GST) framework currently governing food and beverages in hotel-based restaurants, which is presently contingent upon room tariffs exceeding Rs. 7500.
HRAWI has passionately advocated for the implementation of a standardized GST rate across all dining establishments, whether they are housed within hotels or operate independently, to eradicate inconsistencies and promote fairness.
The association’s recommendation is to decouple the GST rates from room tariffs, a move aimed at fostering equitable competition and bolstering the long-term viability of the hospitality sector.
“We extend our heartfelt congratulations to the newly elected Union Government and remain hopeful about the burgeoning prospects for the tourism and hospitality sectors. With strategic policies and focused efforts, India stands on the brink of becoming a premier destination for both domestic and international tourists, thereby significantly bolstering the nation’s economic advancement,” stated Pradeep Shetty, President of HRAWI.
Shetty further implored the government to streamline regulatory frameworks to enhance the Ease of Doing Business within the industry. He emphasized that simplifying the process for obtaining licenses, reducing bureaucratic red tape, and clarifying existing regulations are critical steps that would drive growth and innovation in the sector.
Reflecting on the previous tenure of the NDA government, Shetty noted its substantial emphasis on advancing tourism and its infrastructure. “Hotels and restaurants are pivotal to this development and require equal focus. Any disparity between the two sectors could hinder our goal of attracting 100 million tourists by 2047 and realizing a USD 3 trillion tourism economy. We urge the government to persist in its efforts to develop tourist circuits, heritage sites, and transportation networks to improve accessibility and enrich the visitor experience,” Shetty concluded.
In summary, the HRAWI’s appeal underscores the necessity for a holistic and fair approach to GST structuring, regulatory reform, and infrastructural development to propel India’s tourism and hospitality industries towards unprecedented growth and success.