The Dark Side of GST
New Delhi: The MICE (meetings, incentives, conferences and exhibitions) events to be held in Kochi, Kerela this September have been shifted to Thailand and Sri-Lanka, all due to the GST which has kicked in in the backbone of Indian economy from the 1st of July. This has called for concern among all the hoteliers around the country, especially Delhi and Kerela, which boast of an abundance of hotels and restaurants perfect for meetings and conferences. Hoteliers said that “with the 28% tax slab, high-end Indian hotels have become steeper than countries such as Thailand and Sri Lanka, leading to bookings being renegotiated or even moving to other countries”, and this is actually a threat to the Indian markets where business is slackening, some being on the verge of shutting down forever. Garish Oberoi, VP, Federation of Hotel and Restaurant Associations of India has stated the above facts clearly down. “People are expressing concerns and expecting us to renegotiate our base rates. We are evaluating these events on a case-to-case basis as some of these events are planned in advance and cannot be moved at the last minute” said Tarun Thakral, chief operating officer at Le Meridian (Lutyen’s) Delhi. And unfortunately, this situation is still under negotiation, with no particular solution being conceived yet.