GST in Hospitality: Calls for Simplified Rates Gain Momentum

GST in Hospitality: Complex Rates Spark Debate for Simplification

By Nishang Narayan

Published on September 15, 2024

The Goods and Services Tax (GST) was introduced to unify India's tax system, but its complexity has posed significant challenges for the hospitality industry. Hoteliers across the country are grappling with a maze of multiple GST rates, leading to confusion for both businesses and customers.

Currently, hotels and restaurants face different GST rates: 5% for non-AC restaurants, 18% for those with air conditioning or liquor licenses, and up to 18% for hotels with room rates above ₹7,500. These disparities have created confusion, compliance burdens, and a negative impact on customer experiences.

Humor Highlights GST Confusion in Coimbatore

A recent discussion in Coimbatore brought these challenges to the forefront when Srinivasan, President of the Tamil Nadu Hotel Owners Association, humorously described the GST woes to Union Finance Minister Nirmala Sitharaman. He pointed out the absurdity of different GST rates: "There is no GST on a pan, but 18% on cream. Customers joke they’ll buy the ingredients separately and make dishes themselves!” He called for a uniform GST rate to simplify the process.
Srinivasan also shared an amusing anecdote about MLA Vanathi Srinivasan, a regular customer at his restaurant, highlighting the confusion caused by multiple GST rates on a single bill. “She eats jalebi with 5% GST, then orders spicy coffee with 12% GST. It’s a daily struggle for us,” he remarked, drawing laughter from the crowd.

A Call for Simplification

The humorous tone underscored a serious plea for a simplified GST regime. Srinivasan urged the government to adopt a single GST rate across all services to reduce the administrative burden on businesses and enhance transparency for customers.

He also noted the complications created by platforms like MakeMyTrip, which dictate room rates and affect the GST charged year-round. “We charge 18% GST on a ₹7,500 room rate all year, even if it’s only applicable for special events once a year,” he added, calling for a reassessment of these policies.

Impact on Customers and the Industry

The complex GST structure impacts both customers and businesses. Customers face inconsistent pricing and unexpected costs, while businesses must manage increased administrative duties and compliance costs, diverting resources from their core mission of providing excellent hospitality.

The Need for GST Reform

The hospitality sector's demand is clear: a simplified GST rate across all services. This change could ease compliance burdens, reduce costs, and improve experiences for customers. As stakeholders continue to voice their concerns, the government’s response will be critical in shaping a fairer, more transparent GST system that benefits everyone.

Hotel owners and customers alike hope for swift reforms that will address these challenges and support the growth of the hospitality industry in India.

PGC Chennai Presents HE Awards – Honouring the Strength, Stories, and Spirit of Men in Society

By Author

Published on July 9, 2025

In a landmark moment for Ponneri and beyond, the Ponneri Gymkhana Club (PGC) made history by hosting the first-ever HE Awards, a heartfelt tribute to the spirit, resilience, and role of men in shaping our communities. The event, presented by PGC in collaboration with Hospitalitynews, was held on July 4th, 2025, and marked a powerful beginning to what promises to be a prestigious annual tradition.

The evening welcomed over 300 distinguished guests and honored 25 exemplary men from diverse backgrounds—fathers, professionals, leaders, mentors—whose contributions often go unnoticed but are deeply felt within the fabric of society.

Gracing the celebration as Chief Guest was His Highness Mohammed Asif Ali, the Prince of Arcot, whose presence added regal dignity to the occasion. Echoing the sentiment of the evening were esteemed guests Assistant Commissioner of Ponneri, Mr. Shankar, and MLA Mr. Durai Chandrasekhar, who in their powerful keynote address stated, “Honouring good men is not just about what they do, but who they choose to be every day – leaders, fathers, brothers, mentors, and pillars of society.”

The ambiance at PGC was truly celebratory, showcasing its grandeur with 178 rooms, 4 banquet halls, 2 sprawling lawns, and over 12 sports amenities—firmly positioning it as not just a club, but a premium destination for weddings, corporate gatherings, and lifestyle events.

The event was supported by TJS College of Arts & Science and Big Screen, and was expertly curated by Sonali Jain and Kashish Jain, who brought the evening to life with emotion, elegance, and purpose.

The night concluded with standing ovations, soulful music, and a clear promise—that the HE Awards, in partnership with Hospitalitynews, will return every year to shine a light on the quiet strength and positive influence of men in our society.

Because when we honour goodness, we inspire greatness—and the HE Awards are just the beginning.

About PGC Chennai:
Located just 40 minutes from Chennai, the Ponneri Gymkhana Club (PGC) is one of Tamil Nadu’s largest and most vibrant private clubs. With luxurious accommodation, top-tier sports facilities, banquet halls, and picturesque lawns, PGC is redefining what it means to blend hospitality, leisure, and community. Whether you're planning a dream wedding, corporate retreat, or simply a weekend escape, PGC offers an unmatched experience of celebration and serenity. Learn more at www.pgcchennai.com.

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PGC Presents the First-Ever HE Awards in Association with Hospitalitynews – Join Us to Celebrate Unsung Heroes on July 4th!

By Author

Published on July 2, 2025

This Friday, July 4th, 2025, the Ponneri Gymkhana Club (PGC), in collaboration with Hospitalitynews, is all set to host the first-ever edition of the HE Awards (Honouring Excellence Awards)—an inspiring evening dedicated to recognizing individuals who have selflessly served society.

With the theme “They Deserve Their Moment,” the event promises to be a grand tribute to Professors, Doctors, Police personnel, Government Officials, Social Workers, and many more everyday heroes whose dedication often goes unrecognized.

The event will take place at the Ponneri Gymkhana Club, with proud support from TJS College of Arts & Science and Hospitalitynews as the official media partner.

Event Details:

Date: Friday, 4th July, 2025
Time: Starting from 3:00 PM
Venue: Ponneri Gymkhana Club

This is your chance to witness an evening filled with heartfelt stories, inspiring achievements, and community appreciation. Come be part of this meaningful celebration and show your support for the people who make a real difference in our lives.

For RSVP and More Information:

+91 75502 65615 / +91 93636 32829
Follow on Instagram: @ponnerigymkhanaclub

Let’s come together to celebrate those who deserve their moment in the spotlight!