Agency: Adfactors PR
Budget hotels – charging less than Rs 2,000 per room/night comprise 80% of the hospitality market in India. These comprise the preferred option for the great Indian middle-class. Before the Goods & Services Tax (GST) was introduced, small hotels levying room tariffs of under-Rs 1,000 were exempt from paying service tax, while other hotels paid a 15% service tax.
In the period immediately preceding the introduction of GST, there was consternation among hoteliers due to the possibility of imposition of high tax slabs for the hospitality sector. As per the then-available information, the GST slab for services sector was expected to rise to 18%.
OYO, our client and India's largest hospitality company, felt compelled to intervene on behalf of small, budget, and mid-market hotels that had otherwise little wherewithal to engage with the government on GST matters.