HRAWI Appeals To GST Council For Uniform 5% GST Rate on Hospitality and Tourism Services To Boost Indian Tourism and Global Competitiveness

Mumbai, September 02, 2025:

“HRAWI has submitted a representation to the Hon’ble Finance Minister and the GST Council urging rationalisation of GST in the hospitality and tourism sector. India’s tourism industry, which contributes nearly 5 per cent to the nation’s GDP and is among the largest generators of jobs, continues to be disadvantaged by high GST rates compared to its South-East Asian competitors including Thailand, Indonesia, Singapore, Vietnam and Malaysia. For this, we have requested the Government to consider a uniform 5 per cent GST rate with Input Tax Credit (ITC) across all hospitality and tourism services, including restaurants, bakery, namkeens, outdoor/indoor catering and allied services to simplify compliance, improve affordability and enhance competitiveness for Ease Of Doing Business. Additionally, we have recommended delinking GST on F&B services from room tariffs and to regularise past GST payments on an ‘as is basis’ to resolve long-standing industry challenges. These measures will not only boost tourism inflows but also align with the Hon’ble Prime Minister’s vision of Viksit Bharat 2047, by positioning tourism as a key growth engine, cultural ambassador and source of inclusive employment. Rationalisation of GST is a vital step towards unlocking the full potential of India’s hospitality sector and ensuring its rightful place on the global stage,” says Mr Pradeep Shetty, Spokesperson, Hotel And Restaurant Association (Western India) – HRAWI.

About the Hotel And Restaurant Association (Western India) – HRAWI

The Hotel And Restaurant Association (Western India) – HRAWI is a 75 years old Association of Hotels and Restaurants in Western India. Its members include Restaurants and Hotels up to 5-Star Deluxe categories. With membership base spread across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and Union Territory of Dadra and Nagar Haveli and Daman and Diu, and is considered to be the voice of the Hospitality Industry. The association is part of the national body of the Federation of Hotel & Restaurant Associations of India (FHRAI), located in New Delhi, which was originally founded in Mumbai in 1950 by the late Mr J.R.D. Tata.