Maharashtra recognises hospitality sector as an industry

To levy taxes and tariffs at industrial rates

In an effort to revive the hospitality sector in the state, which has been badly affected by the Covid pandemic, the Maharashtra Cabinet has decided to classify the sector as an industry. Such a classification is expected to revive the sector and to provide better facilities to the tourists. In the first phase commencing from April 1, 2021 hotels registered with the Union Ministry of Tourism will be levied with electricity tariff, electricity duty, water tariff, property tax, development tax and non-agricultural tax at industrial rates. An expert committee will be appointed to determine the criteria for levying taxes and charges at the industrial rate on those hotels who are not registered with the Ministry. Through an online application process, such hotels who meet the criteria will then be charged at the industrial rate.