India cuts hotel GST Oct 2019
- Sep 21, 2019 | Richard Asquith
India’s GST Council has announced a range of tax stimuli, including a reduction in the Goods and Services Tax rate on hotel accommodation. GST on hotel accommodation will by cut from 24% to 18% for rooms rented at above Rs7,500 per night. Below this limit, the rate will be cut from 18% to 12%. Rooms rented at below Rs1,000 per night will be zero-rated for GST.
Catering services, excluding alcohol, will drop to 5%. The new rates will apply from 1 October 2019.
The other tax measures affect mostly direct corporation tax. The main corporate income tax rate will be cut from 30% to 22%. The aim of the tax cuts are to help lift the economy. India's gross domestic product had expanded at the slowest pace in almost six years between April and June as the industry grappled with tighter liquidity conditions at banks that sapped the availability of credit.