Subhash Mahajan
Dalhousie:
Former Dalhousie Assembly candidate Manish Sareen has appealed to the central government to reduce the Goods and Services Tax (GST) on hotel bookings in order to provide relief to the hospitality industry and encourage tourism in Himachal Pradesh.
Currently, a uniform 12% GST is levied on hotel room tariffs ranging from ₹0 to ₹7500. Sareen argued that this rate disproportionately affects budget-conscious travelers, particularly from lower and middle-income groups, and creates economic inequality in the tourism experience.
He proposed a revised GST structure:
- 5% GST on rooms priced up to ₹3500
- 12% GST on rooms priced between ₹3501 and ₹7500
Sareen emphasized that such a move would invigorate the hotel sector, increase bookings in both private and government-run establishments, and make travel more accessible for budget tourists.
He also announced plans to discuss the proposal in detail with R.S. Bali, Chairman of the Himachal Pradesh Tourism and Civil Aviation Department. Sareen expressed optimism about a positive outcome and urged all four Members of Parliament from the state to raise the issue in Parliament.
The demand comes amid broader discussions on GST rationalization, with industry stakeholders and policymakers exploring ways to simplify tax structures and support regional economies.
