The high rate of Goods and Services Tax to the hotel industry has brought a chill to Rajastha, the desert state that probably draws the most tourists that come to India. On an average 1.5 million foreign tourists visit Rajasthan every year, that's about 20 per cent of the total number of foreign tourists that visit the country. GST has placed hotels that charge over Rs. 5,000 a night in the highest tax bracket - 28 per cent. The new rates will push the tourists' bills up by nearly 40 per cent as the existing rates are between 12 and 18 per cent. The new tax slab also applies to restaurants that have air conditioning and serve alcohol.
