In Kerala, GST To Make Budget Hotels Cheaper But Eating Out Costlier

In Kerala, tourists looking for budget hotels are likely to enjoy the monsoon even more from July 1, 2017, as tariffs will be down after the implementation of GST or goods and services tax. "We fall into the range of Rs. 1,000-Rs. 2,500 room rent...which means that we now pay a tax of 19 per cent but with GST coming in, we will pay only 12 per cent. Some rooms are of Rs. 3,000-Rs. 4,000 range. That will be at 18 per cent after GST. It's still 1per cent less," says Hari Harasudhan, general manager, The Capital. A room in 'The Capital', in Thiruvananthapuram, which now costs Rs. 2,142 for a night will be slightly cheaper at Rs. 2,016.