3rd October, 2019
The Managing Directors/CEO's/Owners/Director/Partners/General Managers
All FHRAI Members
CC: All Members of the Executive Committee
All Regional Associations
Subject: Goods and Services Tax (GST) Rate Cut for Hotels – Notification
Dear Member (s),
It continuation to the trailing e mail circular dated 26th September, 2019 with regard to the proposed Rate Cut for Hotels in the Goods and Services Tax (GST). Please find attached herewith a copy of the Notification issued by the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance for your kind reference and perusal.
Members may also click on the link to access the same. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-20-2019-cgst-rate-english.pdf;jsessionid=B1A64A2AE0738E82174452D27000E512
Best regards,
Rahul Lall
Secretary General
_____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Fax: 011-40780777
Email: fhrai@fhrai.com, Website: www.fhrai.com
On Thu 26 Sep, 2019, 10:31 PM FHRAI, <fhrai@fhrai.org> wrote:
26th September, 2019
The Managing Directors/CEO's/Owners/Director/Partners/General Managers
All FHRAI Members
CC: All Members of the Executive Committee
All Regional Associations
Subject: Goods and Services Tax (GST) Rate Cut for Hotels
Dear Member (s),
This has reference to the 37th GST Council meeting which was held on 20th September, 2019 in Goa, India. The meeting was chaired by Hon’ble Smt. Nirmala Sitharaman, Union Finance and Corporate Affairs Minister, Government of India.
As you are aware, that the FHRAI was working very closely and endlessly for the interest of the Hospitality Industry, with the Ministries and Departments and had submitted various representations, based on the inputs received from its Members, with regard to the reduction in the Goods and Services Tax (GST) on Hospitality Industry.
The strenuous efforts made by FHRAI has yielded fruitful results when the Hon’ble Minister during the 20th September GST Council meeting announced the reduction in the GST Rate on Services as recommended by the GST Council which are as mentioned below:
Hotel Accommodation: (Source: Press Information Bureau)
|
Transaction Value per Unit (INR) per day
|
GST
|
|
INR 1000 and less
|
Nil
|
|
INR 1001 to INR 7500
|
12%
|
|
INR 7501 and more
|
18 %
|
Catering Services: (Source: Press Information Bureau)
Reduce rate of GST on outdoor catering services other than in premises having daily tariff of unit of accommodation of Rs 7501 from present 18% with Input Tax Credit (ITC) to 5% without Input Tax Credit (ITC). The rate shall be mandatory for all kinds of catering. Catering in premises with daily tariff of unit of accommodation is Rs 7501 and above shall remain at 18% with ITC.
GST rates have been recommended to be increased from: (Source: Press Information Bureau)
18% to 28% +12% compensation cess on caffeinated Beverages
|
Please Note: It is proposed by the Government to issue notifications on 1st October, 2019 giving effect to these recommendations of the GST Council.
|
The FHRAI Executive Committee and the Secretariat wish to thank its Members for submitting their inputs on regular intervals and for reposing the trust upon us.
Thank you,
Best regards,
Rahul Lall
Secretary General
_____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Fax: 011-40780777
Email: fhrai@fhrai.com, Website: www.fhrai.com