Hotel stocks rally up to 9 per cent on GST rate cut
Post market hours on Friday, the GST Council reduced tax rate on hotel room tariffs, a move aimed at giving a boost.
New Delhi: Scrips of hotel companies zoomed in the morning trade on Monday by up to 9 after the GST council cut tax on hotel room tariffs.
Indian Hotels was trading 9 per cent higher, ITC was up by 7 per cent, Royal Orchid Hotels gained 7 per cent and Hotel Leela rose 4 per cent on the BSE.
Post market hours on Friday, the GST Council reduced tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector.
The GST (goods and services tax) rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12 per cent from the existing 18 per cent, officials attending the GST Council meet said.
Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent.
There will be no GST on room tariffs of below Rs 1,000 per night.