FHRAI Advocates for GST Reform: Proposes Delinking F&B Rates from Hotel Tariffs

FHRAI Advocates for GST Reform: Proposes Delinking F&B Rates from Hotel Tariffs

By Nishang Narayan

Published on November 28, 2024

The Federation of Hotel & Restaurant Associations of India (FHRAI), the third-largest hospitality association globally, has reiterated its demand for delinking Food & Beverage (F&B) service rates from hotel room tariffs. This appeal was presented during the DG GST Samvad meeting on November 14, 2024, where key FHRAI leaders, including Vice President Mr. Pradeep Shetty, voiced the hospitality industry's concerns.

Currently, the GST on F&B services is linked to hotel room tariffs, creating operational complexities and policy inconsistencies. For hotels with room tariffs exceeding ₹7,500, F&B services are taxed at 18% with input tax credit (ITC), while those below ₹7,500 are taxed at 5% without ITC. This structure has been challenging, particularly for midscale hotels, hampering their ability to dynamically adjust room pricing and manage compliance efficiently.

A Call for Simplicity and Neutrality

FHRAI proposed delinking F&B rates from accommodation charges to simplify compliance, enhance tax neutrality, and foster industry growth. “The current policy deviates from GST’s principles of neutrality and simplicity,” stated Mr. Shetty. “Delinking will empower the industry to adopt market-driven pricing strategies while ensuring operational efficiency and revenue neutrality for the government.”

image

FHRAI also advocated introducing an 18% GST slab with ITC benefits for standalone restaurants. This move could reduce operational costs and boost tax compliance, further supporting the sector’s growth trajectory.

A Balanced Solution for Growth

By decoupling F&B charges from room tariffs, FHRAI envisions a level playing field for midscale and high-tariff hotels. The proposed changes promise to enhance tax compliance, streamline operations, and enable hotels to respond flexibly to market trends, potentially increasing GST revenues through higher room tariffs.

About FHRAI

Established in 1955, FHRAI serves as the apex body of India’s hospitality industry. Representing hotels and restaurants nationwide, the association plays a pivotal role in shaping the sector’s growth, fostering collaboration with government and international bodies, and advocating for industry-friendly policies.

The hospitality industry now awaits the GST Council’s decision, which could mark a significant step toward a fairer and more growth-friendly tax regime.


Della Resorts Unveils Curated Luxury Retreat for the Republic Day Long Weekend

Della Resorts Unveils Curated Luxury Retreat for the Republic Day Long Weekend

By Hariharan U

Published on January 18, 2026

As the Republic Day long weekend approaches, Della Resorts & Adventure is inviting travellers to step away from city life and indulge in a curated luxury retreat set amidst the scenic hills of Lonavala. Designed for guests seeking a refreshing escape without travelling far, the Republic Day Retreat offers a relaxed yet indulgent holiday experience close to Mumbai and Pune.

Available from January 25, the retreat features a luxury overnight stay complemented by a complimentary breakfast, a specially curated buffet dinner, and live entertainment, creating an effortless setting for guests to unwind and celebrate the long weekend in comfort.

image

Ideal for couples, families, and groups of friends, the experience blends comfort, indulgence, and entertainment, allowing guests to slow down and enjoy a thoughtfully planned staycation. With its expansive property, multiple dining venues, and signature hospitality, Della Resorts continues to position itself as a preferred destination for short luxury escapes.

The Republic Day Retreat is offering an attractive premium getaway option for travellers looking to mark the national holiday with a memorable and relaxing experience in the hills of Lonavala.


Hyatt Place Butwal Announces Opening in Western Nepal

Hyatt Place Butwal Announces Opening in Western Nepal

By Hariharan U

Published on January 17, 2026

Hyatt Place Butwal has officially announced its opening, marking a significant milestone in the hospitality landscape of western Nepal. The property becomes Butwal’s first internationally branded five-star hotel, introducing global hospitality standards to a market witnessing rapid economic and tourism-led growth.

The opening reflects Butwal’s rising importance as a regional hub, supported by expanding industrial activity, improving infrastructure, and growing international connectivity. With the operationalisation of Gautam Buddha International Airport in nearby Bhairahawa, demand for international-standard accommodation has increased across business, leisure, and trade segments.

Hyatt Place Butwal has already made an impact on the city’s evolving social and lifestyle scene with the successful hosting of its grand opening celebration, “New Year’s Eve Under the Stars.” The event brought together prominent business leaders, influencers, and local patrons, highlighting the hotel’s ability to curate large-scale, world-class experiences and position itself as a premium lifestyle destination in the region.

Commenting on the opening, Tushar Nagar, General Manager, Hyatt Place Butwal, said, “The overwhelming response to our New Year’s Eve celebration reflects that Butwal is ready for a premium hospitality and lifestyle experience. With improving air connectivity and a rapidly expanding industrial base, the need for international-standard accommodation has grown significantly. Hyatt Place Butwal aims to bridge this gap while supporting the region’s evolving business and tourism ecosystem.”

Strategically located at the intersection of the Mahendra Highway (Asian Highway) and the Siddhartha Highway, Butwal is transforming from a transit town into a commercial and industrial powerhouse. Its strategic highway access, growing industrial zones, and international air connectivity position the city as a key connector for trade, tourism, and transit in western Nepal.


Espire Hospitality Expands with Country Inn Launch in Varanasi

Espire Hospitality Expands with Country Inn Launch in Varanasi

By Hariharan U

Published on January 16, 2026

Espire Hospitality Limited, one of India’s fastest-growing hospitality companies, has announced the launch of Country Inn, Varanasi, marking another milestone in the expansion of its Country Inn Hotels & Resorts portfolio. The new opening strengthens the group’s presence in high-potential destinations and reinforces its focus on culturally significant cities.

Situated in the heart of Varanasi, one of the world’s oldest living cities, the hotel is set against the city’s spiritual energy and timeless charm. Designed to offer a balance between contemporary living and warm hospitality, Country Inn, Varanasi provides a calm and comfortable retreat for both leisure and business travellers. Its proximity to the city’s renowned ghats and sacred temples makes it an ideal base for guests seeking convenience alongside comfort.

The property features thoughtfully designed guestrooms with fresh interiors, soothing colour palettes, high-speed Wi-Fi and premium amenities. Guests can also enjoy curated dining experiences at SUTRA By Banaras, the hotel’s multi-cuisine restaurant serving Indian and international flavours in a welcoming indoor and outdoor setting.

Commenting on the launch, Akhil Arora, CEO & Managing Director, Espire Hospitality Limited, said, “Varanasi is a city of unparalleled spiritual depth, shaped by its cultural richness, history and tradition. We are proud to bring Country Inn to this sacred destination, creating a space that reflects the city’s timeless spirit while offering contemporary comfort and our signature warm hospitality.” He added that the hotel aims to offer travellers a modern space to pause, unwind and immerse themselves in the essence of the city.

The opening of Country Inn, Varanasi further adds momentum to Espire Hospitality Limited’s growth journey. The company has recently signed properties in destinations including Rishikesh, Udaipur, Jalandhar, North Goa and Dehradun, and continues to move steadily towards its vision of operating 30 hotels by FY26.

With a diversified brand portfolio ranging from boutique luxury offerings under ZANA Luxury Resorts to the well-recognised Country Inn Hotels & Resorts, Espire Hospitality Limited continues to strengthen its position as a dynamic and fast-evolving player in India’s hospitality landscape.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.