Hotel industry on September 20 welcomed the reduction in GST on hotel room tariffs that, it said, will provide a major fillip to the hospitality and tourism sector. Finance Minister Nirmala Sitharaman announced nil tax for hotels room tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night would be levied with 12 percent tax as against the existing 18 percent.

Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing 18 percent with input tax credit, Sitharaman said.

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