Citing high inflation, the Federation of Hotel and Restaurant Associations of India appealed to the GST Council to rationalise the GST rates for the hospitality sector. FHRAI has also asked the government to consider simplification of goods and services tax (GST) rules to enable the establishments falling under the hospitality segment to avail Input Tax Credit (ITC).
It has suggested that all F&B revenue of hotels be de-linked from their hotel room tariff slabs and allowed to charge GST at 5 percent without ITC under the composite scheme and 12 percent GST with ITC. "Similarly, for standalone restaurants, FHRAI has asked that two slabs of GST rates be maintained as stated above as was being done in the earlier Service Tax regime," a release said.