FHRAI seeks infra status for hotels, convention centres

New Delhi: Federation of Hotel and Restaurant Associations of India has asked the government to grant infrastructure status for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give a fillip to budget segment in the hotel industry.

In its pre-budget recommendation, the Federation of Hotel and Restaurant Associations of India (FHRAI) also sought GST rationalisation proposing a 12 per cent GST rate across all hotels.

"Granting infrastructure status to hotels and convention centres across all cities is crucial for attracting investments and accelerating growth in the hospitality sector," FHRAI President Pradeep Shetty said in a statement.

FHRAI said one of the key requests put forward by the hospitality federation to the Finance Ministry was to "grant infrastructure status for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give fillip to the budget segment in the hotel industry." Besides, the federation requested a 12 per cent GST rate across all hotels and also demanded the delinking of restaurant tariffs from room tariffs as the current system of GST shifting to different slabs in the same hotel creates compliance issues and confusion among the public.

"Although there is no evasion and avoidance of tax, but the said confusion has become a bone of contention for the hotels across the country due to notices and demands from the GST department," FHRAI said.

Shetty said, "We are confident in the ministry's commitment to implementing GST rationalisation for the hospitality sector." The federation said in its pre-budget recommendations, it highlighted the significance of efforts under the 'Incredible India' campaign and recommended the enhancement of the budget for tourism branding and also requested specific measures to promote MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism in the country.