The report recommends GST with an upper ceiling of 18 per cent that will make the tourism sector competitive and keep luxury travel within the reach of many people. (Shutterstock)A review of GST rates is necessary for the rapid growth of tourism, which is a major job creator, according to a report. The report said the GST on hotels varies according to room tariff. Rooms in the range of Rs 2,500 to Rs 7,500 per night have 18 per cent GST, while rooms above Rs 7,500 have 28 per cent GST, making the tax on premium hotels among the highest in the world, higher than even hotels in New York, London or Paris. An interest subvention scheme can be introduced for small tourism projects such as community homestay and boat operators.

Source: The Telegraph April 29, 2019 19:30 UTC