Bhubaneswar: The state’s hospitality sector is hoping for a uniform 5% GST on mid-segment hotel rooms and meals in the Union Budget for 2026–27, which will be presented by finance minister Nirmala Sitharaman on Sunday.Chairman of the Hotel and Restaurant Association of Odisha, J K Mohanty, said that under the current GST slab structure, hotel rooms priced up to Rs 7,500 attract 5% GST, while those costing above that are taxed at 18%. Similarly, meals at standalone restaurants are charged 5% GST, whereas when served through room service attract 18% GST. “This dual GST system, which came into force almost 10 years ago, has not gone down well with either the industry or guests. A uniform GST slab is a long-pending demand of the hospitality sector,” Mohanty said. He added that the current structure is also a major roadblock to foreign tourist arrivals. Hoteliers said around 75% of hotels fall under the mid-segment category, and many were pushed into the 18% GST bracket amid rising inflation. Simplifying the structure to a uniform 5% GST across all hotel rooms and meal plan categories would make travel and accommodation more affordable for tourists and bring more business to the sector, they said. “GST rates on hospitality should be slashed. Rooms with tariffs of Rs 7,500 and above attract an 18% GST, which is still high in this competitive scenario. We are expecting a uniform 5% GST across all hotel categories and room tariffs. Restaurants, banquets and food and beverage outlets should also be taxed at 5% only,” said hotelier Rajkishore Parida.
