HRAWI lauds Government’s proposal to reduce the GST rate to 12% on Hotels & Restaurants

The Hotel and Restaurant Association of Western India (HRAWI) has welcomed the Government’s proposal to reduce the GST rate from 18% to 12%, making it uniform for both the air-conditioned (AC) and non AC restaurants. The association has also appealed to the Govt. to continue providing the Input Tax Credit (ITC) to hotels and restaurants which will help them maintain the prices for the food and beverages on the menu.

 “The move to bring down the GST rate for AC restaurants will definitely encourage the customer to eat out again. We welcome the proposal and thank the Government for considering our appeal. Presently all industries, and not just hotels and restaurants are trying to grapple with GST and the transitionary phase has been a very difficult phase for us. Continuing to provide ITC will help businesses to counter the rising prices on raw material and other utility costs,” says Dilip Datwani, President, HRAWI.