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Hotel stocks edge higher after GST Council cuts tax on hotel room tariffs

23 Sep 2019 Evaluate

Stocks related to hotel industries edged higher after GST Council has cut tax on hotel room tariffs.

Royal Orchid Hotels is currently trading at Rs. 94.95, up by 13.05 points or 15.93% from its previous closing of Rs. 81.90 on the BSE. The scrip opened at Rs. 90.00 and has touched a high and low of Rs. 98.25 and Rs. 85.20 respectively. So far 77995 shares were traded on the counter.

Lemon Tree Hotels is currently trading at Rs. 59.70, up by 5.90 points or 10.97% from its previous closing of Rs. 53.80 on the BSE. The scrip opened at Rs. 59.00 and has touched a high and low of Rs. 62.40 and Rs. 57.20 respectively. So far 330443 shares were traded on the counter.

The Indian Hotels Company is currently trading at Rs. 160.05, up by 11.80 points or 7.96% from its previous closing of Rs. 148.25 on the BSE. The scrip opened at Rs. 160.00 and has touched a high and low of Rs. 162.95 and Rs. 158.00 respectively. So far 313564 shares were traded on the counter.

The all-powerful Goods and Services Tax (GST) Council, headed by Union Finance Minister Nirmala Sitharaman and having representatives of all states, has hiked tax on caffeinated drinks to 28 percent plus additional cess of 12 percent as against the present rate of 18 percent. However, for hotels, it announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 percent tax as against the existing 18 percent. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent.

The GST was also cut on marine fuel to 5 percent while the same on railway wagons, coaches, roling stock has been increased from 5 percent to 12 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing 18 percent with input tax credit. Exemption from the GST has been given to imports of specified defence goods that are not manufactured in India. Also, the tax on diamond job work has been reduced to 1.5 per cent from 5 per cent earlier. The same on supply of machine job cut to 12 percent from 18 percent.

Further, a uniform GST rate of 12 percent will be levied on woven/non-woven polyethylene bags. The cess levied on top of the maximum 28 percent tax rate on petrol vehicles with the capacity to carry 10-13 persons has been reduced to 1 percent and the same for diesel vehicles has been cut to 3 percent. The tax on almond milk has been set at 18 percent. The GST on slide fasteners (zips) has been reduced to 12 percent from 18 percent earlier. The rate changes shall be made effective from 1 October.

Royal Orchid Hotels Share Price

360.25 1.15 (0.32%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Indian Hotel 659.55
ITC Hotels 162.45
EIH 321.55
Chalet Hotels 778.90
Mahindra Holi.&Resor 272.70
View more..

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