AP Hoteliers Seek GST Cut on Commercial LPG
The hoteliers said commercial LPG is one of the largest recurring expenses for hotels, restaurants, catering establishments and tourism businesses
VIJAYAWADA: Hoteliers in Andhra Pradesh have urged the Centre to reduce the GST on commercial LPG cylinders from 18 per cent to 5 per cent, saying the move would provide significant relief to hotels, restaurants and small eateries.
Representatives of the hospitality sector recently met Union Finance Minister Nirmala Sitharaman in New Delhi and submitted a representation seeking her intervention to place the demand before Prime Minister Narendra Modi. According to the hoteliers, the minister assured them that the matter would be examined.
The delegation also met Chief Minister N. Chandrababu Naidu and sought the state government's support in pursuing the issue with the Centre.
The hoteliers said commercial LPG is one of the largest recurring expenses for hotels, restaurants, catering establishments and tourism businesses. While commercial LPG attracts 18 per cent GST, piped natural gas (PNG) is taxed at only 5 per cent, placing businesses in areas without PNG infrastructure at a disadvantage.
They said reducing GST on commercial LPG to 5 per cent would lower operating costs, improve the viability of hospitality businesses, encourage investment and employment, and ultimately benefit consumers through competitive pricing.
The association also sought restoration of Input Tax Credit (ITC) benefits for the hospitality sector, arguing that the denial of ITC on capital goods such as kitchen equipment, air-conditioning systems, furniture and security systems increases operating costs.
Andhra Pradesh Star Hotels Association president R.V. Swamy appealed to the Centre and the state government to support the proposal, saying the reduction would particularly benefit small and medium-sized eateries without passing additional costs on to consumers.
Meanwhile, roadside eatery owner Raju said rising input costs had forced small establishments to increase food prices and that a reduction in GST on commercial LPG would provide much-needed relief.
In a separate development, Oil Marketing Companies (OMCs) reduced the price of a 19-kg commercial LPG cylinder by `206 with effect from August 1. In Vijayawada, the price has come down from `3,142 to `2,936.