The hospitality industry will reap the benefits of standardised and uniform tax rates and better utilisation of input tax credit with the implementation of GST. It is going to rationalise and streamline the whole tax structure. In long term with the GST implementation and the excise taxes being withdrawn it is going to attract more investment from the global brand in the Indian hospitality market. As a group, the hotels that we were looking at three months earlier are 15 % cheaper now. So yes, due the GST implementation the cost are going to get down making it more profitable for investors, developers and owners in the hospitality industry.
There seems to be some ambiguity and confusion related to GST, which will get clear in time. The only challenges that we seem for the overall hospitality segment as of now is that now even the small unorganised hotel industry will have to be technologically advanced increasing the technological burden and cost for compliance for them.
