Apply GST on actual bills, not declared: TTAG

the goan I networkrPanajirrIt is also reported that TTAG has written to the GST facilitation cell under the tourism ministry of the central government raising this demand. rEarlier, the GST council had decided that the GST rate for a hotel will be based on declared tariff. However, the council had said that the tax should be levied on the actual tariff. rFor example, a 5-star hotel declares that its tariff is Rs 10,000 per night, but to attract a tourist, it reduces the tariff to Rs 7,000 per night. rThe GST rate on hotels falling in tariff range of Rs 2,500 to Rs 7,500 per night is 18%. But the tax rate is 28% on hotels declaring a tariff of more than Rs 7,500. rDue to this, 5-star hotel comes under 28% GST as its declared tariff is more than Rs 7,500. Even if it bills a tourist Rs 7,000 per night, it will have to charge 28% GST. rThis has baffled a lot of hoteliers in the state. Quite a lot of them don’t even understand how this is going to work. rJack Sukhija, member, TTAG, said, “We have requested that the GST should be on actual charged tariff and not on declared tariff. Ultimately, hotels have to recover tax from tourists. It becomes very tough to explain to a tourist that although he is paying less than Rs 7,500 per night tariff, but he will have to pay 28% GST because the hotel had declared a higher tariff.”