CHENNAI: Finding themselves in the 28 per cent bracket under GST, luxury hotels in Chennai could not decide what part of the extra levy they can pass on to customers. From 21.5 per cent, the tax applicable went up to 28 per cent. While some managements began imposing this higher impost from Saturday, some leading chains told New Indian Express that they were still unsure how this is going to pan out.
"As the change in tax rate increases the bill amount, the management is discussing whether to reduce the cost charged on some of the services so that we could absorb the hike and keep clients happy. But a decision is yet to be finalised, it might take another week," said a staffere at one of the leading international chains that has properties in Chennai.
Asked if they expected any reduction in custom, most luxury hotels here responded that their teams were still analysing the impact of the new tax regime, but added that it wouldn't be a massive hit.
For a bill of Rs 15,000, the GST applicable will now be Rs 4,200, whereas it used to be Rs 3,225.
“But for those who visit us, that’s not a big issue,” said the finance manager of a top Indian hotel chain.