Exclusive: GST Council to consider input tax credit to hotels, restaurants; may increase GST at 12-18%
The Government could give input tax credit to hotel and restaurant industry which is currently not given at the current 5 percent GST levy, Zee Business Tarun Sharma reports.
The Government could give input tax credit to hotel and restaurant industry which is currently not given at the current 5 percent Goods and Services (GST) tax levy, Zee Business' Tarun Sharma reports. The decision could be taken in the next GST Council meeting in April.
The GST Council is expected to take a major decision on the issue of GST on hotels and restaurants, Sharma said adding that the levy could go up from 5 percent now to 12 percent or 18 percent. It could also allow input tax credit to the industry, which till now was not available.
The demand for input tax credit was longstanding from the industry and this could now be considered during the GST council meeting, Sharma added.
A report on GST rate rationalisation is being prepared under the Chairmanship of Karnataka Chief Minister Basavaraj Bommai which is expected to be submitted in the first week of April, just ahead of the meeting of the rate rationalisation committee, Sharma said in his report.
All those hotels whose tariff is Rs 7500 or more are subjected to an 18 percent GST and can avail input tax credit.
Zee Business Managing Editor Anil Singhvi called this news a big positive for hotel and restaurant companies.
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