The Federation of Hotel & Restaurant Associations of India (FHRAI) has raised serious concerns over Agoda’s new commission structure, which it claims violates agreements and Indian tax regulations. Agoda’s “Reference Sell Rate” (RSR) charges commission on the total room rate, including GST, contrary to agreements that stipulate commissions should be based on pre-tax room rates.
FHRAI alleges Agoda is not only charging commission on GST but also failing to levy GST on its commissions, shifting the tax burden onto Indian hotels. This, the federation says, creates compliance challenges and risks revenue loss for the government.
The association has also criticized Agoda for applying discounts without consent, delaying payments unless additional commission is paid for expedited transfers, and modifying rate plans unilaterally.
“Unilateral decisions by platforms like Agoda undermine fair collaboration and legal commitments,” said FHRAI President K. Syama Raju. The federation demands Agoda revert to its original tax-excluded commission model and comply with Indian GST laws. FHRAI also urges OTAs to adopt transparent, fair practices to support the hospitality sector’s recovery post-pandemic.
