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Hotel stocks gain as GST fitment committee proposes tax cut; Hotel Leelaventure ralllies 15%, Taj GVK up 11%

Hotel stocks gain as GST fitment committee proposes tax cut; Hotel Leelaventure ralllies 15%, Taj GVK up 11%

Hotel stocks gain as GST fitment committee proposes tax cut; Hotel Leelaventure ralllies 15%, Taj GVK up 11%
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By CNBC-TV18 Sept 18, 2019 10:28:36 AM IST (Published)

Hotel stocks rallied after GST rate fitment committee proposed to cut tax from 28 percent to 18 percent on hotel tariff of Rs 7,500 and above, or to hike threshold tariff to Rs 10,000 with 28 percent. The report of the proposed tax rate cut was first reported by CNBC-TV18.

Hotel stocks rallied after GST rate fitment committee proposed to cut tax from 28 percent to 18 percent on hotel tariff of Rs 7,500 and above, or to hike threshold tariff to Rs 10,000 with 28 percent. The report of the proposed tax rate cut was first reported by CNBC-TV18.

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In intra-day deals, Hotel Leelaventure rallied 15.2 percent to Rs 8.47, while Taj GVK Hotels surged 10.8 percent to Rs 162.95. Among other stocks, EIH Associate Hotels rose 10.7 percent, Royal Orchid Hotels added 9 percent, Indian Hotels gained 4.8 percent, and Lemon Tree Hotels was up 4.4 percent.
Earlier tax on hotels tariff below Rs 7,500 was 18 percent and above that was taxed at 28 percent.
Most hotel stocks have been in red in 2019 due to the ongoing slowdown and muted trends. Hotel Leelaventure has been down 55 percent, while Royal Orchid has lost 46 percent since the beginning of 2019. Lemon Tree has fallen 28 percent, Taj VVK Hotels shed 25 percent, EIH Associate Hotels is down by 21 percent during the same time.
At 10:15 am, the hotel stocks were all trading in the green, up between 1-7 percent. In comparison, the BSE Sensex was trading 0.03 percent or 11 points higher at 36,492.
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