Cheap Oyo Stay: The government is going to make major changes in the GST rates levied on hotel rooms. This is likely to reduce the cost of rooms in many hotels, including OYO. Let’s now know the benefits of these changes.
Currently, there are three types of tax slabs based on the price of hotel rooms.
* There is no GST on rooms below Rs.1000.
* 12% GST is being levied on rooms between Rs. 1000 – Rs. 7500.
* 18% GST is payable on rooms priced above Rs.7500.
* Due to this, those who booked rooms in the Rs. 5000–6000 range would have to pay a higher bill.
As per the decision taken by the Central Government, only two new GST slabs will be implemented.
* First 5% GST
* Second is 18% GST
This will directly benefit those who book mid-range rooms, as they will now only pay 5% instead of 12% previously.
For example, let’s say the price of a hotel room is Rs. 5000. In the old system: 12% GST = Rs. 600, in the new system 5% GST will be Rs. 250. This means a direct saving of Rs. 350 on a single room. This is applicable to all mid-range hotels like OYO, Treebo, FabHotels.
However, the 18% GST will continue to apply to luxury rooms above Rs 7501 as before. So, there will be no discount on big hotels and five-star rooms. This change is purely aimed at the middle class and budget travelers.
Also Read: Bigg Boss Telugu 9 Grand Premiere: Date, Time and Streaming Details
Share
S.S. Rajamouli Meets Kenya Minister Musalia Mudavadi
Alice In Borderland 3 Leaked Scene Shows Chishiya On The Frame
