GST could put luxury hotels in a soup unless travellers pay more

Luxury hotels will have to contend with higher tax rates as the new goods and services tax (GST) takes effect on 1 July. To be sure, the shift from various state taxes levied under the present regime to a more uniform structure is good. Hotels will now be classified into four buckets based on tariff bands and taxed at 5%, 12%, 18% and 28%. Premium and luxury hotels, where room tariffs exceed Rs5,0…