Guwahati: The Federation of Hotels & Restaurants Association of India on Thursday said the body met with GST Council members, including state finance ministers, to press for rationalisation of tax rates for the industry.
"We have met the GST Council, which was represented by the Union Revenue Secretary Hasmukh Adhia. We have also met a couple of state Finance Ministers separately and put forward our demands," Federation of Hotels & Restaurants Association of India (FHRAI) President Garish Oberoi said. The association is seeking reduction of GST to 12 per cent on all categories of restaurants from the differential rates of different segments, he added. Currently, restaurants with no AC and no bar attract a GST of 12 per cent, while all other restaurants fall under the 18 per cent bracket.
"We also heard a news that GST Council was planning to remove the input credit system for the restaurants. This will hurt the industry and it will be against the basic principle of GST. It will also increase the prices. We requested not to remove it," Oberoi said.
"They have listened to us and almost agreed to it. They have assured us of a favourable outcome," he added.