GST impact: Budget hotels in Digha get costlier

Kolkata: The pocket-friendly hotels at Digha — one of the most preferred weekend tourist destinations of Bengal — are now costing more with 12 per cent GST to be levied in the hotels that have its tariff in the range of Rs 500 to Rs 1000.

Previously there was no GST in case of hotels that charged a tariff less than Rs 1000 per day for a single room.

The rooms having a tariff of Rs 1000 to Rs 5000 per day charged GST of 18 per cent will be getting reduced to 12 per cent.

The middle class people who love to travel would frequently go to Digha particularly on weekends to rejuvenate their minds and would put up in budget hotels that charged in the range of Rs 500 to Rs 700. But now for a two-day stay, they will have to pay nearly Rs 150 more.

"The middle class people would come to Digha with a specific budget earmarked for lodging. In order to ensure that they are not discouraged, the hoteliers initially have to charge a little less than their tariff to compensate for the GST. Gradually, the tourists will also understand," Bipradas Chakraborty, secretary of Digha Sankarpur Hoteliers Association said.

The GST rate will be applicable for all hotels across the country.

However, the tourists who would love to spend a bit more for a comfortable stay would have to pay less for their stay as the GST rate has been reduced from 18 to 12 per cent for hotels that charge Rs 1000 to Rs 5000 per day for each room.

The hoteliers have been informed of the present GST structure by the Association so that they impose the needful. It will be made effective in a day or two.