GST in Hospitality: Complex Rates Spark Debate for Simplification

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.

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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.


Experiential Hospitality: The Rise of Storytelling Hotels

Experiential Hospitality: The Rise of Storytelling Hotels

By Shreenidhi Jagannathan

Published on October 28, 2024

In the ever-evolving world of hospitality, a new trend is taking shape—one that transforms hotels from mere places to stay into immersive experiences, deeply rooted in the culture, history, and soul of a destination. Today’s travelers are looking for something beyond luxury; they seek authentic connections and memories that linger long after checkout.

Hotels are responding by reinventing themselves as storytellers. Rooms now go beyond decor, with designs inspired by local legends, traditional craftsmanship, and natural elements that offer a tangible sense of place. Guests may find themselves surrounded by reclaimed wood, locally sourced art, and carefully curated scents and sounds that transport them into the heart of the destination.

Exclusive experiences are becoming an essential part of these storytelling journeys. Guests might embark on guided culinary trails with local chefs, participate in historical reenactments, or join hands-on workshops with regional artisans. These thoughtfully crafted interactions provide an intimate glimpse into the traditions and crafts of the area, allowing travelers to connect directly with the local culture in meaningful ways.

One hotel embodying this trend is 1 Hotel Brooklyn Bridge in New York City. Designed with sustainability and local culture at its core, this hotel uses reclaimed wood, upcycled materials, and decor sourced from nearby Brooklyn artisans. Guests are welcomed with scents of native flora and calming soundscapes from the East River, creating a sensory experience that echoes the city’s natural beauty and urban energy. The hotel offers unique experiences, from rooftop yoga with breathtaking skyline views to curated city walks that explore Brooklyn’s history and ecology. A behind-the-scenes tour introduces guests to the hotel’s zero-waste initiatives, allowing them to see firsthand the commitment to sustainability.

This trend of experiential hospitality is making hotels destinations in themselves, seamlessly blending the art of hospitality with the culture of the locale. By crafting immersive experiences, these properties invite guests to step into a story, to engage with the essence of the place, and to leave with memories that are as rich and layered as the journey itself.


Happy International Housekeeping Week 2024

By Shreenidhi Jagannathan

Published on September 8, 2024

As the world continues to navigate the complexities of modern hospitality, there’s a week each year when the spotlight shines brightly on the unsung heroes of the industry. From September 8-14, 2024, we celebrate International Housekeeping Week, a time to honor and appreciate the remarkable individuals who keep our hotels, resorts, and other lodgings in pristine condition.

A Week of Appreciation and Recognition

International Housekeeping Week is more than just a date on the calendar; it's a dedicated period to acknowledge the hard work, dedication, and excellence of housekeeping professionals. These individuals are the backbone of the hospitality industry, ensuring that every guest experience is not just satisfactory, but exceptional.

During this week, hotels and resorts worldwide will host a variety of activities to celebrate their housekeeping teams. From themed events and special recognition ceremonies to personalized gifts and team-building exercises, the goal is to show gratitude and boost morale.

The Unsung Heroes of Hospitality

Housekeeping staff often work behind the scenes, their efforts crucial yet frequently overlooked. They are the ones who prepare the rooms, clean the spaces, and maintain the high standards of hygiene and comfort that guests expect. Their roles involve meticulous attention to detail, often under tight schedules and high pressure, making their contribution indispensable to the guest experience.

Innovations and Trends in Housekeeping

The role of housekeeping is evolving rapidly, influenced by technological advancements and changing guest expectations. This year’s International Housekeeping Week also highlights some exciting trends in the field:

  • Smart Technology: Many hotels are integrating smart technology into their housekeeping operations, including automated cleaning tools and IoT-enabled devices to enhance efficiency and effectiveness.
  • Sustainability Initiatives: With a growing emphasis on environmental responsibility, many housekeeping teams are adopting green practices, such as using eco-friendly cleaning products and implementing waste reduction programs.
  • Personalization: As guest preferences become more individualized, housekeeping is increasingly involved in creating personalized experiences, from custom pillow menus to tailored room settings.

Looking Forward

As we take this week to celebrate and thank the housekeeping teams who go above and beyond every day, let’s also look forward to continued innovation and excellence in the field. The contributions of housekeeping professionals are deeply valued and crucial to the success of any hospitality operation.

Here’s to a week of celebration, recognition, and appreciation for the true stars of the hospitality industry—our dedicated housekeepers. Happy International Housekeeping Week 2024 from all of us at HospitalityNews!

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Hospitalitynews by Guest Vento Honored with the Indian Achievers' Award for Promising Start-Up

By Shreenidhi Jagannathan

Published on August 13, 2024

We are thrilled to announce that Hospitalitynews by Guest Vento has been recognized with the prestigious Indian Achievers' Award 2024 for Promising Start-Up! This accolade, presented by the Indian Achievers’ Forum, celebrates our outstanding professional achievements and contributions toward nation-building.

Hospitalitynews has always strived to be at the forefront of the hospitality industry, providing in-depth news, insights, and interviews that matter to professionals and enthusiasts alike. Our commitment to delivering quality content and innovative solutions has been unwavering since our inception, and this recognition serves as a testament to the hard work and dedication of our entire team.

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The Indian Achievers' Award is one of the most esteemed recognitions in the country, celebrating those who have made significant contributions to their fields while contributing to the broader goal of national development. Being acknowledged as a "Promising Start-Up" among the many dynamic businesses across India is not only an honor but also a motivation to continue pushing the boundaries of excellence. We extend our heartfelt thanks to the Indian Achievers’ Forum for presenting us with this award and recognizing our efforts. Their support and encouragement play a vital role in our ongoing journey of growth and innovation. For more information about the Indian Achievers' Forum, please visit iafindia.com.

This award fuels our passion to keep moving forward, creating more impactful content, and expanding our reach within the hospitality sector. We are committed to continuing our journey of growth, innovation, and contribution to the industry. We extend our heartfelt gratitude to our readers, partners, and the entire hospitality community for their unwavering support. This award is as much yours as it is ours, and we look forward to achieving greater heights together.

As we celebrate this milestone, we also recognize that this is just the beginning. The future holds even more exciting opportunities, and we are more committed than ever to bringing you the best in hospitality news, insights, and innovations.

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