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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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.