New Delhi, April 27 -- A report by Ernst & Young LLP in collaboration with Federation of Indian Chambers of Commerce & Industry has recommended reducing GST on premium hotel room tariffs above Rs 7,500 from 18 per cent to 9 per cent to improve India's price competitiveness and boost inbound tourism.

The report said the proposed revision, while retaining the 5 per cent GST slab for tariffs between Rs 1,000 and Rs 7,500, is aimed at easing the tax burden, enhancing value perception and aligning India's hospitality pricing with competing global destinations.

According to the report, higher costs of accommodation, transportation and taxes have made India appear relatively expensive compared to countries such as Thailand and Vietnam, particu...