By-Mr. Jai Sreedhar, Joint Managing Director and CEO, Rosetta Hospitality
As the hospitality sector continues to recover and grow, the upcoming Union Budget 2025 offers a significant opportunity to address some long-standing challenges and help the industry reach its full potential.
1. Rationalisation of GST:
The current GST structure creates challenges, especially for luxury hotels. Rationalising GST rates and introducing uniformity across categories would enhance affordability for travelers and simplify compliance for operators, ultimately driving demand and revenue.
2. Enhanced Funding Support:
The hotel industry needs better funding support from both the government and banks to help with the development of new projects. Easier access to loans with favorable terms would encourage investment in infrastructure and promote overall growth in the sector.
3. Input Tax Credit on Construction Costs:
One of the pressing issues is the inability to claim input tax credit on construction costs. Allowing this would significantly ease the financial burden on hotel developers, incentivizing investment and expansion in the sector.
The hospitality industry is a critical contributor to the economy, generating employment and attracting both domestic and international tourism. Addressing these key areas in the budget would not only strengthen the sector but also contribute to India’s overall economic growth.