GST reduction in hospitality industry: moving towards the right direction
You would have come across a repeat guest who suddenly disappeared after the GST implementation, and you wondered , what happened ?
it Was Like “ Der Aye Par Durust Aye” ,after long time there was a silver lining for the dark cloud on the Restaurant Industry, This decision of bringing down the GST from 18 % to 5% at last had brought smile to the Middle society segments since they stopped spending as they use to and of course to the restaurant owners.
The Decision which should have taken much earlier was finally taken, at last the government had acknowledged the genuine problems of hospitality industry. With the same spirit the 18% and the slab of 28% which still applies on Room division and Restaurant in luxuary hotel should be understood.
Its not that the guest will not pay but ,then he won’t do it with that willingness and will look for options to shift his venue to nearby countries, unless he is unable to do so for one or the other reason Thus the hospitality industry in this country eventually losing the business.
Contries likeThailand ,Srilanka, Malysia, which fall in the bracket of 7to 10% will be much more cheaper and will grab the opportunity to be the next host for meetings and events rather india due to the 28% GST implementation, and so will the foreign business cliental and they will skip this country , No doubt even the Indian business and luxary tourism will be shifted to the neighboring countries.
It was the need of the hour that tourism should be understood as a valuable potential , Where the unemployment is raising in the country , tourism is the only alternative which can offer the employments to the country’s youth and bring billions of dollars in foreign exchange to the country, and this will only happen with the right attitude, we congratulate this government for bringing down the GST of the restaurant to 5 % and we hope that very soon they will address the important issues of hospitality industry and will reduce the GST on the other aspects of its Business.
Now the Million dollar question is that will this benefit be passed on to the patrons , and if the restaurant owners fails to do so in order to make profit and increase the prices on the menu list ,it will certainly be like backstabbing the guest , who had welcomed the decision and is looking forward to go back to their old eateries, in this situation, hopefully the government will be more vigilant and would act accordingly.
we congratulate this government for bringing down the GST of the restaurants to 5 % And hope that they will take care of the other aspects of tourism industry so as to boom the business.