Hotels were charging up to 18% tax from customers The huge hike in price even led to heated arguments between customers and employees Prior to implementation of GST hotels were charging only 0.5%
GST was supposed to reduce the price of food items as it was reported they were kept in lower tax brackets. However, those who went to hotels on Sunday, a day after GST was implemented, to have food were surprised to find 12% to 18% in price.
Hotels in Kochi were charging 12% extra for service in the non-AC facility while those who used AC rooms had to pay and extra 18%. Before GST tax was only 0.5%. Customers were obviously not happy with the hike amounting to 11.5%.
The price difference even led to heated arguments between hotel employees and customers. At some places, employees were found explaining the hike to customers.
As per rules, with the implementation of GST tax charged at hotels, that have above 20 lakh turnover will be increased to 5% while those with over 50 lakh turnover will have to pay 12% interest.
However, those functioning in catering area will have to pay 18% interest. Hoteliers are of the opinion that the new facility will benefit only street food vendors and those who do not need a license.
