GST Insight – Dilip Datwani, president, Hotel and Restaurant Association Western India (HRWAI)

“There is an overall reduction in MICE bookings across hotels in India as compared to the same period last year. Advance bookings are being cancelled and new bookings are not happening. Most companies are considering holding events in the same State where they are registered under GST. Businesses may still have digested the high GST, but without input tax credit (ITC), it just becomes unviable. MICE tourism is too important a segment for the nation to overlook. The 28% GST rate for rooms with tariff of INR 7500 and above is one of the highest in the world and will seriously affect cash flow. Moreover, the tax percentage will be determined based on the published or declared rate, which is creating a lot of hardship for the industry. Hotel and Restaurant Association Western India (HRWAI) has appealed the Government to remove this condition and determine the tax percentage based on the actual transaction value and has also requested to review the ITC clause for interstate accommodations.”