The Hotel And Restaurant Association (Western India) – HRAWI has urged the government to separate the GST on food and drink services in hotel restaurants from the tax on room charges. They highlighted the disadvantages of the current system, where the GST for hotel restaurants is linked to room rates and fluctuates from 5% to 18% when the room rate exceeds Rs. 7500. This affects fair competition and the sustainability of the hospitality industry, as it imposes an undue burden on hotel restaurants and creates confusion for guests. HRAWI emphasized the importance of standardized GST rates for all food and beverage services and stressed the need for a competitive environment where hotels can compete on equal footing with standalone restaurants. The association covers Western India and is part of the national body of the Federation of Hotel & Restaurant Associations of India.
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