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Budget Reaction: Hospitality, Food & Beverage Industry Expected Relief On GST
The hospitality, food, and beverage industry, significantly wished that the government would think about a GST reduction to boost the sector. The pandemic has ripped the hospitality and tourism industry mostly, in the past 1 year. However, the union budget, 2022 did not mention any GST reduction, and the industry insiders are concerned about this.
On the other hand, the budget mentioned the Emergency Credit Line Guarantee Scheme (ECLGS) scheme for providing a boost to the hospitality sector. The budget said, "The hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs. 50,000 crore to total cover of Rs. 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises."
Experts' opinion
Commenting on the budget Deval Tibrewalla, CEO & DIRECTOR, Hotel Polo Towers Group said, "The budget is a forward-looking budget though we had hoped for relief on GST and infrastructure status for the industry. More clarity on the Emergency Credit Line Guarantee Scheme (ECLGS) extension will help the industry understand the benefit better."
Shreevardhan Asopa, Co-owner, LMNO_Q told the media, "The budget that was introduced by our finance ministry for the upcoming year is both helpful as well as incomplete. In terms of the F&B industry, there is a little relaxation where few consumable items have gotten cheaper making it even more accessible. The restaurant industry which includes food services, restaurants, and cafes, has been the worst hit by consecutive waves of the pandemic. We have seen restrictions being imposed on these businesses and we hardly received any amount of relaxation or help. It felt very disappointing to see that no specific announcements were made for our industry and we are yet again left to fend for ourselves."
