As India implements the biggest reform to its taxation system since 1991, STAAH platforms are updated and ready to meet new GST requirements.
“With effect from July 1, taxes will be applied dynamically on the gross tariff, as per the GST rules,” says Tarun Joukani, Managing Director, STAAH India Pvt Ltd.
Few other providers of channel management and booking engine technologies for the hospitality industry in India have been able to complete this update in time, resulting in inefficient stop-gap arrangements for their clients.
“These changes are expected to have a far reaching impact on the hospitality industry, especially the luxury sector (five star and higher starred properties). While our clients assess the financial impact on them, we want to ensure that we enable smooth processing by dynamically applying the correct GST amount on bookings,” says Tarun.
As per the new rules, no GST is applicable on room tariffs below ₹1000 per day. Room rates between ₹1000 and ₹2500 are subject to a 12% GST; between ₹2500 and ₹7500 are subject to 18% GS; and those above ₹7500 are subject to 28% GST.
The growing list of STAAH’s Indian clients will find that these tax changes will be dynamically implemented on their channel manager and booking engine. The taxes are calculated based on gross tariff, migrating from the current manually-applied tax applicable.
The update will reduce any manual errors on tax calculations, enable easy generation of precise reports on GST amounts and help deliver GST-compliant receipts.
STAAH’s Indian team is working closely with clients to help them manage the settings and ensure the system is working smoothly for them. If you have any queries regarding the update, contact your account manager.