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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 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.
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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:
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 32829Follow on Instagram: @ponnerigymkhanaclub
Let’s come together to celebrate those who deserve their moment in the spotlight!
Published on June 23, 2025
This August, Bharat Mandapam, Pragati Maidan, will host the country’s most anticipated food and beverage convergence — the 14th Annual Indian Restaurant Congress & Awards 2025 (IRC) alongside the debut edition of Coffee & Tea Asia 2025 (CTA). From August 5–7, 2025, this power-packed three-day event will bring together more than 2,000 F&B stakeholders, innovators, and entrepreneurs under one roof to reimagine the future of dining, delivery, café culture, and culinary innovation.
Organized by RestaurantIndia.in and Franchise India, the event reflects a decisive moment in India’s $95.75 billion F&B industry — one that’s evolving rapidly with digital integration, premiumization, and global expansion.
Hospitalitynews India is proud to be the official media partner for this landmark dual-platform gathering, committed to bringing readers exclusive coverage, expert interviews, and post-event insights straight from the ground.
Under the theme “A Global Outlook,” the Indian Restaurant Congress 2025 will explore how Indian culinary brands are expanding overseas, and how global players are customizing strategies for the Indian market. Topics to watch out for:
Immersive dining & phygital experiences
10-minute delivery and cloud kitchen evolution
Franchising blueprints for hypergrowth
Restaurant tech and AI integrations
The event will feature 150+ top voices in the industry including:
Udai Pinnali, Aditya Birla New Age Hospitality
M. Mahadevan, Advantage Foods Pvt. Ltd.
Sukul Kundan, PF Chang’s India
Tarun Jain, Tim Hortons India
Chef Suvir Saran, Chef Kunal Kapur, and Chef Atul Kochhar (2x Michelin-starred)
The summit concludes with the prestigious Indian Restaurant Awards and Culinary Innovation Awards 2025, honoring the most visionary F&B professionals and establishments in India.
Making its Indian debut, Coffee & Tea Asia 2025 is Asia’s leading B2B platform dedicated entirely to the coffee and tea value chain. Co-located with IRC, this event brings together:
Café and roastery owners
Tea estate operators
Equipment manufacturers
Sustainable packaging pioneers
Retail and tech disruptors
Expect live brewing demos, buyer-seller meets, product tastings, and showcases of café culture shaping urban India. Whether you're a barista, café chain, or supplier, CTA 2025 is where beverage innovation comes to life.
The expansive trade floor will be divided into four curated zones:
ReStart – Disruptive F&B startups and franchise trailblazers
ReSupply – Kitchen tech, packaging, and supply chain innovations
ReSoft – Restaurant-focused tech solutions and digital tools
ReSpaces – Interiors, design, and hospitality real estate concepts
With 200+ speakers, 2,000+ premium attendees, and participation from across India, Southeast Asia, and the Middle East — this convergence is set to be an unparalleled platform for networking, lead generation, and trend forecasting.
India’s F&B market is expanding at 10%+ annually, driven by evolving consumer preferences and smart technology. IRC & CTA 2025 offer an unmatched lens into:
New business models in dining and delivery
Hospitality technology and sustainability
Global franchise scaling and investments
Coffee and tea retail innovations
End-to-end visibility of the foodservice ecosystem
Whether you're a restaurateur, café entrepreneur, chef, investor, or food tech leader — this is your opportunity to engage with the brightest minds and most influential brands in the industry.
Dates: August 5–7, 2025Venue: Bharat Mandapam, Pragati Maidan, New DelhiRegister: www.restaurantindia.in/congress | www.coffeeandtea.asiaFollow: #IRC2025 #CTA2025
Early bird rates end soon. Save more on combined passes and group registrations.
As the official media partner, Hospitalitynews India is thrilled to support this extraordinary initiative and will bring exclusive updates, speaker highlights, and thought leadership articles to its extensive network of hospitality professionals across the country.
Join us as we witness the future of food and beverage — live in action.
By Shreenidhi Jagannathan
Published on May 20, 2025
The future of IndiGo’s high-profile wet lease partnership with Turkish Airlines hangs in the balance as the Indian government reconsiders aviation ties with Turkey in light of recent geopolitical developments and national security priorities. With the lease set to expire on May 31, 2025, sources close to the Ministry of Civil Aviation indicate that an extension is now “highly unlikely.”
The turning point came after the tragic terror attack in Pahalgam, Jammu & Kashmir, which left several Indian personnel dead. In the aftermath, India's diplomatic community reached out to several countries for support and solidarity. Turkey’s tepid response—marked by silence and the absence of a firm condemnation—was seen as a failure to stand with India during a moment of national grief.
This perceived lack of cooperation has since become a key driver behind the government's broader reassessment of ties with Turkish entities, including in sectors like civil aviation and ground operations.
According to government sources cited by The Hans India, there is little appetite to continue the existing arrangement, which allows IndiGo to operate wide-body Boeing 777 aircraft from Turkish Airlines on long-haul routes like Delhi-Istanbul and Mumbai-Istanbul. The aircraft, crewed and maintained by Turkish Airlines personnel, operates under a wet lease model—raising concerns among Indian authorities over foreign-controlled operations within national airspace.
"The government is unlikely to renew the pact with Turkish Airlines," a senior official told The Hans India, underscoring the security-first approach currently guiding aviation policy.
Adding to the signal was the recent revocation of security clearance for Celebi Aviation—a Turkish ground-handling services provider operating at key Indian airports. Though no formal statement outlined the exact rationale, officials suggest it is part of a broader effort to minimize operational exposure to foreign entities from diplomatically sensitive nations.
The potential non-renewal of the IndiGo-Turkish Airlines pact could ripple across the hospitality and tourism sectors. The collaboration had allowed seamless long-haul travel for Indian flyers to Europe and beyond via Istanbul, boosting footfall for both countries. Several Indian travel companies and hotels had aligned their outbound packages and B2B arrangements with the increased frequency and capacity.
A pause or termination of the agreement could result in short-term disruptions—particularly for outbound travel to Turkey and connecting European markets. Several tour operators have already begun revisiting their routing and promotional strategies in anticipation of reduced seat availability.
IndiGo, India’s largest airline, has acknowledged the strategic utility of the wet lease, especially amid aircraft delivery delays. However, the airline appears prepared for a pivot.
“The Turkish Airlines lease helped bridge our long-haul service gap during a crucial recovery period,” an IndiGo spokesperson stated, “but we are aligned with the government’s vision and are ready with alternate strategies.”
The airline is reportedly accelerating deployment of its own wide-body fleet and increasing frequencies on other international routes to ensure uninterrupted global connectivity.
As India sharpens its focus on aviation independence and security, the likely termination of the IndiGo-Turkish Airlines pact underscores the delicate balance between commercial partnerships and national interests. For the travel and hospitality ecosystem, the development is a strong reminder of the importance of diversification and agility in an evolving geopolitical landscape.
HospitalityNews will continue to provide timely updates and expert coverage at the intersection of aviation, travel, and hospitality.
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