Hoteliers Seek ITC Relief for Tourism and Hospitality Sector
ASHA president R.V. Swamy and adviser M.V. Murali met the Union minister during her visit to Amaravati on Friday and submitted a representation seeking her intervention on issues primarily related to ITC.
Vijayawada: The Andhra Pradesh Star Hotels Association (ASHA) has appealed to Union finance minister Nirmala Sitharaman to allow input tax credit (ITC) for the tourism and hospitality sector under the current 5% GST slab, saying this would reduce costs for consumers and help make tourism more affordable.
ASHA president R.V. Swamy and adviser M.V. Murali met the Union minister during her visit to Amaravati on Friday and submitted a representation seeking her intervention on issues primarily related to ITC.
They explained that under the earlier 12% GST regime, hoteliers collected 12% from customers but availed 3–7% ITC on inputs, effectively absorbing 5–7%. Under the present 5% GST without ITC, the input set-off has been lost, increasing operational costs and leading to higher prices for consumers. They warned that this would directly affect demand, make tourism projects less viable and reduce private investment in new ventures. Without ITC, they said, room tariffs and the cost of food and wellness services will inevitably rise.
If 5% GST with ITC cannot be restored, ASHA requested a two-year transition window to utilise accumulated ITC. They also urged the Centre to delink GST on hotel food and beverages from room tariffs, arguing that this would boost government revenue while helping the hospitality sector grow.
