Thursday, 9 November 2017

Weddings at luxury hotels get GST Relief

Ever since the implementation of the Goods and Services Tax (GST) in India, much has been happening in all sectors. The same is with the hotel and hospitality industry at large as well. Many were upset with the higher rates of GST announced initially for luxury hotels.

Recent relief on GST

Following many discussions in regard to the levy of GST on luxury hotels in recent times there has been a relief for some. In fact for most of India’s luxury hotels the goods and services tax (GST) has proven to be more than auspicious for the upcoming wedding season.  It is true that, the 28% GST on luxury hotel rooms has hurt. But at the same time the flattening of multiple taxes promises to cheer up the banqueting end of the business. This is what some hoteliers from the industry feel.

   


Most hotels already sold for the wedding season
According to  some of the senior officials in major hotels in the capital the hotels are all sold out for the upcoming wedding season. In their opinion of course the GST rates have helped.
Previously, the multiple taxes were such that the overall costs of booking and hosting at an event like wedding at luxury hotels could go up as much as 30-35% .

In comparison the GST for such events have all been clubbed under banqueting and would be taxed at the rate of just 18%. This is a major relief in comparison to the very high tax rated in the past.

Bookings at luxury hotels for such events encouraging now
Going by the present trends the bookings at most of the major luxury hotels have been quite encouraging. In fact statistics show that some luxury hotels have seen their business in the segment witness a growth of as much as 18- 20 % in recent times. This is very encouraging indeed.

In conclusion we can say that now that even the taxation seems to be more favourable for hosting events at luxury hotels, you could consider hosting any such event in luxury hotels as well if something is coming up in the future.

In case you happen to be based in Dhanbad or around you could consider hosting such an event at our hotel. We are one of the leading luxury business hotel in Dhanbad offering the best hospitality facilities and services at the most affordable rates. To know more about our services please visit our website.