High taxes on dining affect tourism in Pondy: Min

PWD minister K Lakshminarayanan has pressed for keeping the GST levied on room rents separated from restaurant services within hotel premises citing adverse impact on tourism while also calling for retaining Air Turbine Fuel (ATF) under VAT.

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At the 55th GST council meeting chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer on Saturday, Lakshminarayanan pushed for detaching room rent from the taxation of restaurant services as the council proposes that hotels charging above ₹7,500 for rooms must impose an 18% GST on their restaurant services from the next financial year. Only a standard 5% tax is levied on food and drinks served in standalone restaurants, he said.