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GST ‘Bachat Utsav’ gives Shimla hoteliers, traders reason to cheer
With the Navratri festival beginning and GST cuts taking effect from Monday, bookings have already started picking up, say hoteliers
After a lull of two months, budget hotel owners and traders in rain-battered Shimla finally have reason to cheer as they expect to see a boost to tourism with the revised goods and services tax (GST) rates coming into effect on Monday, the first day of the Navratri festival.
“Tourism, agriculture and small industries will benefit due to this ‘Bachat Utsav’. Lower GST on room rents will attract more tourists, while at the same time it will reduce the input cost for horticulture and agricultural growers. Apple and potato farmers will benefit directly. When production rises, unemployment will go down, and both small and medium industries will see growth. Even transport costs will come down if fuel taxes are lowered, making essential items affordable,” said Subhash Kumar, who runs a budget hotel in Shimla.
Shimla Hotel and Restaurant Association vice-president Prince Kukreja was upbeat too and said that the lower tax rates would draw tourists to the hill state that has seen a devastating monsoon with infrastructure worth an estimated ₹4,841 crore damaged. The tourist destinations of Kullu-Manali, Kangra, Shimla and Mandi were among the worst hit.
Kukreja said that last weekend, the hotel occupancy in Shimla was below 10%. “With the Navratri festival beginning and GST cuts taking effect from Monday, bookings have already started picking up,” and he expects the hospitality business to improve in the coming days.
However, Kukreja also raised a concern. He pointed out that budget hotels charging less than ₹7,500 per night will no longer be eligible for input tax credit (ITC), which could create challenges for such establishments.
Local residents, vendors, and traders termed the GST reforms a positive step that would directly benefit the common man, reduce inflation, and boost business activity in the festive season. They said the decision to simplify slabs into primarily 5% and 18%, while lowering or eliminating GST on essential commodities would ease household expenses and create wider economic opportunities.
“The public will benefit because no item will have GST above 18%. Items that earlier had 28% GST are down to 5% or even exempted. Milk, curd, pulses and flour rates have been reduced to 5%, which will directly help households,” said Surinder Singh, a local resident.
Ratan Lal, a local vendor, said: “When the GST is lowered, inflation comes down. With the onset of the festival season, purchasing will increase that in turn will boost GST collection. The money collected through GST will go into the country’s development. The common man will benefit directly since essential goods get cheaper.”
