"As the hospitality industry steadily recovers and grows, the Union Budget 2025 is anticipated with optimism" shared by Mr. Jai Sreedhar, Joint Managing Director and CEO, Rosetta Hospitality and he also said that "It offers an opportunity to address long-standing challenges and propel the sector toward its full potential"

1. Rationalisation of GST

The current Goods and Services Tax (GST) structure poses significant challenges, particularly for luxury hotels. Rationalizing GST rates and ensuring uniformity across categories would enhance affordability for travelers. Additionally, simplified compliance would ease the administrative burden on operators, driving demand and increasing revenue in the sector.

2. Enhanced Funding Support

Funding continues to be a critical hurdle for the hospitality industry. The development of new projects requires easier access to loans with favorable terms from both government and private banks. Improved funding mechanisms would encourage investment in infrastructure, fostering overall growth in the industry.

3. Input Tax Credit on Construction Costs

The inability to claim input tax credit on construction costs is a pressing issue for hotel developers. Addressing this would significantly ease financial burdens and incentivize expansion, enabling the sector to meet the growing demand for accommodations and related services.

The hospitality industry plays a pivotal role in India’s economy by generating employment opportunities and attracting both domestic and international tourists. Addressing these concerns in the Union Budget 2025 would not only bolster the industry but also contribute significantly to the nation’s economic growth.