GST has made hotel stays costlier

Yogesh Sarkar

Administrator
This is something I have observed while browsing hotel booking apps as well, prices of hotels have gone up quite a lot after the introduction of GST. In particular, the initial tariff of the hotel shown in the app and the final one after GST and convenience fee is a world apart and has lead me to change my mind about booking a hotel on multiple occasions.

What has been your experience?

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SachinOnTop

Full Use Else Lose
... the initial tariff of the hotel shown in the app and the final one after GST and convenience fee is a world apart and has lead me to change my mind about booking a hotel on multiple occasions.

What has been your experience?
Due to this one factor, I also have changed my mind many times and had to waste time again to search for another options. I am already in a fight with MMT over this as well! :D

MMT guys are going to blacklist me soon... ;)
 

Yogesh Sarkar

Administrator
Goibibo is the same as well. Even after hefty discount and using all the Gocash, I have to pay more than the initial price that is shown, which is unacceptable.
 

anupmathur

Super Moderator
Staff member
Hotel owners will lower their rates when they see reduced traffic.
In any case most hotel rooms are overpriced.
I think aggregators like OYO Rooms will swing into action to maintain volumes, thus compelling all to comply.
 

Yogesh Sarkar

Administrator
Sir Oyo isn't vfm, Goibibo used to give excellent value and the discounts used to be great. People have even gotten 4 and 5 star properties for less than 2k. But that all seems gone now. Maybe a new player will come and disrupt the market, but I don't have high hopes from incumbents.
 

anupmathur

Super Moderator
Staff member
India needs to invest in public toilets and their maintenance. This will reduce some demand on hotels where people can travel in trailers. This smallest one is cute.

http://www.highcamptrailers.com/
Haha, Big Daddy, this costs about 10 lakh rupees! There would have to be an agency that rents these out for short durations. In our cities there is no place to keep them parked! In most tourist destinations there is no provision for parking RVs and there are absolutely no Trailer Parks. India is simply not ready for this concept, and, perhaps, never will be!
And, lastly, the vast majority of the cars owned by Indians cannot tow this thing!
 

skysat2005

Super User
YS, the chart shown by you shows the maximum GST for hotels priced at/above 7.5K per day/room.
Hotels below 1K are under Nil GST, 1000 to 2500 under 12%, 2500 to 7500 under 18% and above 7500 are under top slab of 28%.

The problem is the hotels have published their rates very high even though they may be offering the same room in 50% or more discount. But GST is chargeable on published rate band they have submitted to Govt agency.

This explanation was given to me by Goibibo customer service guy when I asked him why GST being charged on room costing less than 1K.

I think hotels must make their tariff more practical, in order to pass the GST benefit to clients.
 
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