By Anumeha Chaturvedi

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IANSFHRAI annual meeting

On the occasion of its 69th Annual General Meeting, the Federation of Hotel & Restaurant Associations of India (FHRAI), representing over 1 lakh hotels and 5 lakh restaurants nationwide has called for ‘immediate government action’ to safeguard the future of hospitality, a sector that directly and indirectly supports over 60 million livelihoods.In his address, Surendra Kumar Jaiswal, President of FHRAI highlighted that 90% of India’s hotels operate below a room tariff of Rs 7,500, and are now subject to a Goods and Service Tax (GST) at 5% without Input Tax Credit (ITC). Although the recent revision in the GST rates is a continued effort to rationalize tax rates in order to benefit consumers, improve compliance, and support growth, it, he noted, has turned into an added cost for guests and created structural cost burdens on hotels, particularly in Tier II and Tier III cities. He stressed that the withdrawal of ITC has escalated unrecoverable costs on rentals, utilities, outsourced manpower, and capital expenditure, deterring investments and threatening the growth of domestic tourism. FHRAI called for reinstating ITC at the earliest and issuing a clarificatory circular to remove compliance ambiguities.Beyond GST, Jaiswal also addressed persistent issues of copyright harassment, where multiple societies raise overlapping royalty demands, creating unjustified legal and financial pressures on hotels and restaurants. He urged the government to define the roles of copyright societies clearly, prevent multiple collections for the same content, and shield establishments from wrongful litigationA major part of FHRAI’s vision, as outlined by Jaiswal, is to secure both Infrastructure Status and full Industry Status for hospitality, which would unlock low-cost credit, encourage balanced regional development, and boost investments in smaller towns and cities. He also reiterated the need for ease of doing business reforms, including streamlined licensing norms and the implementation of a Single Window Clearance System. “Our industry is one of the largest generators of employment and a key driver of India’s service economy. Yet, the GST framework without ITC has created inequities that threaten our competitiveness. We are not seeking concessions but fairness, clarity, and parity,” he said. Live Events”By restoring ITC, addressing copyright ambiguities, and granting Infrastructure and Industry Status, the government can empower hospitality to support the vision of Viksit Bharat 2047 and secure India’s rightful place as a global tourism hub,” he added. Add as a Reliable and Trusted News Source Add Now!
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