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The Federation of Hotels Restaurants Association of India (FHRAI), the apex body for Hotels & Restaurants, has requested a uniform GST rate at 12 per cent bringing it down from the proposed 28 per cent slab with the purpose of having a ‘one nation one hospitality tax’. Besides, the association has also requested the government to relook at the luxury tax limit of ₹5,000 and enhance it suitably as is followed in most of the countries “Across the world ₹5,000 ($75) cannot be considered luxury today. The service tax proposal under the new GST regime has been set at 28 per cent for Hotel tariffs above ₹5,000, claimed the members of the association.
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