GST 2.0: Hotel chains keep room rates stable

NEW DELHI: Hyatt, ITC Hotels, Radisson Hotel Group, and Sarovar Hotels are among hotel chains choosing to keep their room tariffs unchanged and instead pass on the benefits of the reduced goods and services tax (GST) rate to travellers, according to hoteliers, and tariffs on booking and travel platforms on Monday.

The Centre has cut the GST rate on rooms costing up to Rs 7,500 per night to 5% (without input tax credit) with effect from Monday, from 12% with input tax credit earlier. A room at the Hyatt Centric Candolim in Goa will cost Rs 5,670 on Tuesday, after adding 5% GST rate, per rates published on a popular travel platform, while Fortune Resort, Benaulim, Goa is charging Rs 4,463, after adding 5% GST for same date.

"There is no change in our room rates, and we have applied the 5% GST rate on rooms priced up to Rs 7,500 from Monday," said Ajay Bakaya, chairman of Sarovar Hotels and director at Louvre Hotels India. "Out of 140 hotels, about 80 hotels spanning over 5,000 rooms would be priced in this category in our portfolio. I think it's a good move, and we need to look at the benefits from a customers' perspective as well."