first_imgHotels and Restaurants Association of Eastern India (HRAEI), the umbrella body of hospitality industry in the region, has welcomed the introduction of the Goods and Services Tax (GST) bill and its passing by Lok Sabha and the hospitality industry is happy that there will be a single point uniform taxation for all hotels and restaurants throughout the country. It will substantially reduce paper work and multiple filing of various tax returns will be a thing of the past.The optimism is however circumspect as the industry is not sure about the rate of GST that will be fixed by the government. The indicative rate of 16% to 20% which is being speculated is very high for the hospitality industry and will mean a body blow to the industry, as a result of which the hotels and restaurants will suffer.“​The members of our Association feel that the GST rates for the hospitality industry should be capped at 10%. Since government is now targeting a manifold increase in Foreign Tourist Arrivals (FTAs) it should introduce a facility whereby the foreign guests who have paid GST on their hotel and restaurant bills can claim refund of GST at the airport at the time of departing”, said Sudesh Poddar, President,​ ​HRAEI​. He said, “We are confident that the eTV initiative of the Government of India coupled with GST refund for foreign guests will spur the tourism industry into a high growth trajectory.”last_img