The Hotel and Restaurant Association of Western India (HRAWI) has appealed to the Union Finance Minister and the GST Council to introduce a uniform 5% GST rate with Input Tax Credit (ITC) across all hospitality and tourism services.
Highlighting that tourism contributes nearly 5% to India’s GDP and remains one of the country’s largest job creators, HRAWI said the sector continues to face a disadvantage due to higher GST rates compared with South-East Asian destinations such as Thailand, Indonesia, Singapore, Vietnam, and Malaysia.
The association has also recommended delinking GST on food and beverage services from room tariffs and sought regularisation of past GST payments on an “as is basis” to resolve longstanding industry challenges.
“These measures will simplify compliance, improve affordability, and enhance India’s competitiveness globally,” said Pradeep Shetty, spokesperson, HRAWI. “A rationalised GST regime will not only boost tourist inflows but also align with the Prime Minister’s vision of Viksit Bharat 2047, positioning tourism as a growth engine, cultural ambassador, and source of inclusive employment.”
