GST on cooking gas, rent constrain hoteliers to pass on benefits to consumers

Bengaluru, Sep 25 (PTI) The Karnataka State Hoteliers’ Association on Thursday said it is constrained to pass on the GST benefits to consumers as the taxes on cooking gas cylinders and property rents have not been reduced.

In a statement, association president G K Shetty said the association congratulated the government for reducing the GST on many items which help the common public.

"People are asking us as to when hotel food and room tariffs will be reduced. But we, the hoteliers, are constrained to reduce the price at this juncture unless we get some relief from the government," he said.

He pointed out that vegetables, meats and some more items under zero per cent from the beginning and the 18 per cent GST on cooking gas cylinders had remained untouched.

In addition, hoteliers who run their business from rented buildings are paying 18 per cent GST on the rent they pay, Shetty noted.

The hotelier said the majority of restaurants and hotels are run in rented buildings.

"If the GST is reduced to five per cent on rent, then we can pass on the benefits to our consumers. With the present GST rate, it is not possible for us to offer any relief to consumers," he underlined.

He further said the association has requested the government to give some relief in the GST on property rent to help hotels survive in this competitive business world. PTI GMS GMS KH