It has been a month since the Central Government has reduced the Goods and Service Tax (GST) rate to 5 per cent from 18 per cent which has benefitted restaurants and hotels to revive their losses.
The Indian Hotels and Restaurant Association (AHAR) has welcomed the central government’s move. Adarsh Shetty, president of AHAR told Hindustan Times, that after GST was implemented it hit the hotel industry where the hoteliers saw 30 per cent loss in their business. But, after reducing the GST rate, hoteliers are witnessing only 15 per cent losses.
On July 1, the GST was introduced where 18 per cent tax rate was fixed for restaurants which comprised 9 per cent each of the state and Central tax. Along with consumers who took the burden of the tax, the restaurant businesses and food delivery systems took a hit as well.
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