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.


Building Trust Visually: The Power of Digital Signage & Video Walls in Hospitality and Beyond

Building Trust Visually: The Power of Digital Signage & Video Walls in Hospitality and Beyond

By Shreenidhi Jagannathan

Published on April 30, 2025

In today’s digital-first world, communication is no longer limited to traditional methods like static billboards or printed brochures. Visual storytelling has become the cornerstone of how brands connect with their customers, especially in industries like hospitality and real estate, where experiences are key to building trust and loyalty. At Modwin Networks, we believe in the power of “Building Trust Visually” — a philosophy that’s redefining the way businesses engage with their audiences.

Revolutionizing Guest Engagement in Hospitality

The hospitality industry thrives on creating lasting impressions, and digital signage is the perfect tool to enhance this experience. Imagine a guest walking into a hotel lobby and being greeted not just by a friendly face, but by a customized, dynamic digital display that welcomes them with relevant information tailored to their needs. Whether it’s promoting the hotel’s restaurant, spa, or upcoming events, digital signage ensures that every touchpoint with the guest feels personalized and engaging.

Beyond that, interactive displays offer guests a chance to easily navigate the property with digital maps, book services, or even access real-time updates. This seamless integration of digital signage elevates the guest experience, making it more intuitive and connected to the services available.

Digital Signage in Real Estate: A Game Changer for Property Marketing

For real estate developers, the challenge is often how to make large-scale projects relatable and tangible for potential buyers. Video walls and digital signage have emerged as powerful tools in this space. These visual displays allow developers to bring blueprints and project designs to life in a way that traditional brochures simply can’t. Buyers can now engage in interactive 3D walkthroughs, gaining a better understanding of the space before it’s even built.

Real-time project updates can be showcased through digital displays, giving clients an up-to-date view of a property’s progress. This level of engagement not only builds trust but accelerates the decision-making process, making it easier for clients to feel confident in their investment.

The Modwin Edge: Seamless Integration for Maximum Impact

At Modwin Networks, we don’t just provide technology—we offer tailored digital solutions designed to fit seamlessly into your brand’s vision and architecture. We’ve spent over a decade honing our expertise in system integration, working across IT, AV, networking, and security to deliver comprehensive solutions for clients in diverse industries. Our approach goes beyond simply installing equipment; it’s about creating long-term partnerships that help brands achieve their communication goals.

What makes us different? It’s our focus on delivering bespoke digital experiences that blend perfectly with your space, while offering flexible financial models to meet your budget. We also provide round-the-clock technical support and Annual Maintenance Contracts (AMCs), ensuring that your digital solutions stay operational and impactful over time.

Expanding Beyond Hospitality

While hospitality and real estate have been the primary adopters of digital signage, there’s an increasing demand for these solutions in other sectors as well. Banks and NBFCs are turning to digital signage to communicate offers, manage queues, and improve branding across their branches. Jewellery retail chains are using video walls to create immersive, premium shopping experiences that tell the story behind each piece of jewellery. Educational institutions are modernizing their campuses with digital noticeboards and interactive displays, keeping students and staff informed in real time.

Retailers and fashion brands are elevating their storefronts with visually striking displays that captivate passersby, while restaurants and lounges are incorporating dynamic menus, chef showcases, and live kitchen feeds to enhance the dining experience. In each of these sectors, digital signage plays a crucial role in bridging the gap between brands and their audiences, offering unique ways to engage and communicate.

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India is on the brink of a digital revolution, and the widespread adoption of visual display technology is transforming physical spaces into immersive “digital destinations.” At Modwin Networks, we view digital signage and video walls not just as tools but as strategic assets that enable businesses to engage customers, inform them in real time, and ultimately, build trust.

Our mission is simple: to be the technology partner of choice for businesses looking to leverage digital communication to enhance their brand’s impact. As we continue to expand our footprint, we remain committed to offering the highest level of service and innovation, helping our clients stay ahead in the digital era.

About Mr. Vinod Vattekkat

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Mr. Vinod Vattekkat is the Managing Director of Modwin Networks Pvt. Ltd., a leading system integration company specializing in AV, digital signage, networking, and security solutions. With a strong presence in hospitality, commercial, and institutional projects, Modwin Networks has established itself as a trusted partner for businesses seeking to enhance their digital communication capabilities.

Learn more at www.modwin.com or email sales@modwin.com


Terror Attack in Pahalgam Leaves Tourist Injured, Raises Concerns for Hospitality and Tourism Sector

Terror Attack in Pahalgam Leaves Tourist Injured, Raises Concerns for Hospitality and Tourism Sector

By Author

Published on April 23, 2025

On April 22, 2025, a tragic terrorist attack in Pahalgam unfolded at the picturesque Baisaran meadow, a popular spot among tourists in Jammu and Kashmir, India. Unidentified militants opened fire on a group of Indian tourists, leading to the death of at least 24 people and injuring several others. Indian security agencies have officially classified the incident as a terror attack, allegedly carried out by militants opposing India’s presence in the region.

This tragic event marks one of the deadliest attacks on civilians in Kashmir in recent years. The hospitality industry, which has been instrumental in promoting tourism in the region, faces renewed challenges in ensuring the safety and security of visitors.​

Pahalgam, known for its scenic beauty and tranquil environment, has long been a favourite among tourists. The attack not only resulted in the loss of innocent lives but also threatens to deter future visitors, impacting local businesses and the broader hospitality sector.

In response to the incident, Indian Prime Minister Narendra Modi condemned the attack and emphasised the government's commitment to combating terrorism. Union Home Minister Amit Shah travelled to Srinagar to assess the situation and coordinate security measures. Authorities have launched a manhunt to apprehend the perpetrators and established a helpline to assist affected tourists. ​

The attack has drawn widespread condemnation from political leaders and civil society. Chief Minister Omar Abdullah described the incident as "much larger than anything we've seen directed at civilians in recent years." Congress leader Priyanka Gandhi Vadra called it a "crime against humanity," and Defence Minister Rajnath Singh labelled it an "act of cowardice." ​

Local hospitality businesses are grappling with the aftermath, focusing on supporting victims' families and reassessing security protocols to restore tourist confidence. The incident underscores the need for enhanced safety measures and collaboration between government agencies and the hospitality industry to ensure the well-being of visitors.​

As the region mourns the loss of lives, the hospitality sector must navigate the challenges posed by such incidents. Strengthening security, fostering community resilience, and promoting transparent communication are essential steps in rebuilding trust and ensuring that Pahalgam remains a welcoming destination for all.


The Death of Exclusivity: When a Birkin Becomes Just Another Bag

The Death of Exclusivity: When a Birkin Becomes Just Another Bag

By Shreenidhi Jagannathan

Published on April 17, 2025

Let’s call it what it is: the walls around luxury are crumbling.

Once upon a time, buying a Hermès Birkin wasn’t just a transaction—it was an event. Waitlists, appointments, subtle flexes of power and privilege. Today? Scroll through TikTok and you’ll find videos of Chinese factories casually assembling what look shockingly similar to the very same bag, selling them directly to consumers—no velvet rope, no gatekeeper, no mystery.

And that’s the real story here.

Luxury, in its traditional sense, was built on scarcity, secrecy, and a certain untouchable status. But with factory workers showcasing craftsmanship on social media, and influencers educating their audiences on how and where to buy these pieces at a fraction of the price—luxury is being democratized. Some might say disrupted. Others might say liberated.

From Chanel to Prada, these brands are now in a vulnerable position. The aura they’ve curated for decades is being peeled back, layer by layer, video by video.

And here’s the kicker: it’s not just about counterfeits anymore. These are often the same factories making goods for the global brands. It’s the direct-to-consumer revolution playing out in real time, and it's reshaping the very essence of what "premium" even means.

The Luxury Industry Has a Decision to Make

Adapt or fade.

Do brands double down on storytelling, heritage, and emotional value? Or do they reimagine what “exclusivity” looks like in a world where a 22-year-old in Delhi or Chengdu can order a Birkin-lookalike straight from a factory for $200?

One thing is certain: luxury is no longer a one-way conversation from Paris and Milan to the world. Thanks to TikTok, China just flipped the script—and everyone’s watching.

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