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They’re vital to large businesses and governments and may also take part in lower profile cases.
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Here’s how various sectors in India have reacted to the implementation of the Goods and Services Tax (GST) and how it will impact business.
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Hotel owners find 28% tax steep for cheaper rooms; travel sector satisfied
Following the implementation of the GST, the hospitality and travel sectors expect teething issues in the first few months but are not unduly worried, expecting support from government.
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However, the Federation of Hotel and Restaurant Associations of India (FHRAI) Vice President Garish Oberoi said the 28 per cent GST for hotel rooms with a tariff of Rs 7,500 per night and above is very steep. He asked the government to keep that rate only for rooms with tariff of Rs 10,000 per night and above.
As far as the travel sector goes http://www.texansfansproshop.com/Texans+Kevin+Johnson+Rush+Jersey.html?cat=1342 , the GST rate for tour packages has increased marginally from 4.5% to 5% and players do not expect that to impact the holiday demand.
Industry: CII says GST will make India Inc. more competitive
The Confederation of Indian Industry (CII) has said that the GST will incentivise exports, help expand the tax net, contribute to the ease of doing business and accelerate new business ventures. “Input tax credit will curb inflation by avoiding tax-on-tax. We believe that most businesses would pass on the benefits of input tax credit to consumers so that inflation would be curbed,” CII President Shobana Kamineni said. She added that the industry is prepared for implementing the GST.
Exports: Exporters worried about new restrictions in using duty credit scrips
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FIEO Director General Ajay Sahai said exporters are worried as they have to arrange funds for payment of GST, which will be refunded to them upon exports. “This may lead to a blocking of funds for over six months in many cases, thus affecting competitiveness of exports,” Mr. Sahai said.
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“While developers might still get some benefits for projects that are in nascent stages, they will have to bear the tax burden for the ready-to-move-in projects since they are kept out of the GST ambit http://www.texansfansproshop.com/Texans+Kaimi+Fairbairn+Rush+Jersey.html?cat=1375 ,” House of Hiranandani Chairman and Managing Director Surendra Hiranandani said.
Anarock Property Consultants Chairman Anuj Puri said the affordable housing sector will not be impacted as there will be no tax under GST for the affordable housing scheme.
Durables: some relief for buyers
Unlike realty, the durables sector is unlikely to pass on the burden of higher tax to the buyers, as the industry is expecting only a marginal price revision despite the category being placed under the highest tax slab of 28% under GST. The tax rate for the sector was around 25–27%.
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