Delhi government issues norms to reimburse GST in coronavirus isolation hotels

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The Delhi government has issued guidelines for reimbursement of goods and services tax (GST) on room charges of five-star hotels designated as quarantine facilities in view of coronavirus outbreak. According the guidelines approved on Thursday, GST amount will be reimbursed within 60 days of the receipt of the application.

However, GST already charged from the guests quarantined at the hotel will not be reimbursed .“The reimbursement by the department shall be subject to availability of fund under the appropriate head of budget in the relevant financial year,” said the guidelines.

Passengers arriving at the Delhi airport from COVID-19 affected countries and categorised ‘level B’, high risk (aged above 55 years or have medical history or co-morbidities) after in second week of March was sent to institutional (government-run ) quarantine facilities after screening by doctors.

After some passengers complained of lack of basic amenities, five-star hotels in Aerocity, near the airport, were engaged and converted into paid facilities on March 17. On March 19, the government decided to waive the GST and offer the rooms at a flat rate of `3,100 per night. The rate includes breakfast, lunch and dinner; tea and coffee and other facilities such as WiFi and TV.

The hotels include Red Fox, IBIS, Aloft, Holiday Inn, and Pride Plaza. Till Friday, there were 603 persons were staying in paid isolation facilities. “The owner of the hotels shall follow the guidelines issued for claiming reimbursement amount equivalent of GST paid on the room rent charges to the hotels designated by the government,” said the order.

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