Apart from setting up a helpline for consumers, minister for food, civil supplies and consumer protection Girish Bapat said on Tuesday that hoteliers will face action if they do not implement Goods and Services Tax (GST) slash rates on food items from existing 18% to 5 % from Wednesday. The GST council had recently brought down the rates on various items, including hotels and restaurants. The new rates were to come into effect from Tuesday midnight.

“We have rolled out helpline for consumers. They can contact us if restaurants or hotels fail to charge a uniform GST rate of 5%, instead of 12% or 18% earlier depending on AC or non-AC restaurants. We will take action against such hoteliers,” said Bapat. The minister hopes all restaurants in the state will slash GST rates from the Tuesday midnight.

“I am sure the hotels will abide by the government decision and pass on the benefit to consumers. In case people feel hotels are not passing on the relief, they can contact us on our helpline 1800225900.” The GST council had previously pegged GST rates of 18% for luxury hotels and 12% for non-luxury hotels. However, following much outcry from consumers and hoteliers, the GST council on November 11 slashed the rates to 5%.

Speaking to HT, Ganesh Shetty, president, Restaurant and Hoteliers Association, Pune, said that all the hotels will implement the new tax rates from Wednesday morning even as there is no clarity from the government on how to charge customers under the new tax, especially as regards to bifurcation of state and central share.

“So far, we used to charge customers 12% with 6% as state GST and 6% as central GST. However, there is no clarity on the new tax rates. On our part, we have decided to charge 2.5% as state GST and 2.5% as central GST,” Shetty said.

State launch GST helpline, tells hoteliers to fall in line or face action.