GST Rationalization and Hospitality Growth by Ruban Das

GST Rationalization and Hospitality Growth by Ruban Das

By Author

Published on September 10, 2025

"In the wake of India’s recent Goods and Services Tax rationalization, the accommodation landscape for discerning travelers remains largely unchanged at the premium end. The simplified tax structure, which reduces amplification of costs at the economy and mid-market tiers, preserves the existing 18 per cent levy on nightly stays exceeding ₹7,500. The tax overhaul eases burdens for mid-tier counterparts, potentially stimulating overall travel demand, a trend from which established operators naturally benefit for hotels up to ₹7,500 with a GST of 5% (without any input credit facility) from the existing 12% GST.

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We urge the authorities to reconsider the GST structure for hotel-based dining outlets and align it with that of stand-alone fine dining restaurants. A uniform tax rate will ensure fair competition, healthier growth of the industry, and better value for consumers.
In essence, the GST evolution affirms our resolve: even as regulatory winds shift, our commitment to excellence remains steadfast. We continue to invest thoughtfully in staff training, amenity enhancement, and sustainable practices, confident that the regulatory bedrock affords us clarity—and the freedom—to elevate each guest’s experience with distinction and unwavering warmth."- Ruban Das, General Manager, Hyatt Regency Chennai Submission from Hyatt Regency, Chennai


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