Quick Summary
TheKarnataka State Hotels Association has highlighted its inability to pass on the benefits of recent GST rate cuts to consumers due to high taxes on LPG cylinders and property rents. Following the GST Council's decision on September 22 to reduce rates on around 375 goods and services, hoteliers welcomed the move but noted that reductions on cooking gas and rental costs remain absent. "Unless GST on property rent is lowered, it is not possible to offer relief to consumers," said the association
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FAQ :
Karnataka hotels cannot pass on GST benefits because of high taxes on essential services like LPG cylinders and property rents, particularly the 18% GST on rented premises which limits their ability to adjust tariffs.
Himachal Pradesh hotels are requesting the Prime Minister to enforce RBI and MSME restructuring frameworks, halt SARFAESI proceedings, provide interest subvention, implement a moratorium on loan payments, and offer long-term loans.
Natural disasters like excess rainfall, cloudbursts, floods, and landslides have caused Rs 4,861 crore in losses for Himachal Pradesh's tourism sector, leading to the closure of many small and medium operators.
The primary obstacle for Karnataka hotels is the absence of GST reductions on essential costs like property rent and cooking gas, despite a general GST rate cut on other goods and services.
Himachal Pradesh hotels are facing high-interest rates from banks, often up to 15%, and are subject to SARFAESI actions even when compliant, exacerbating their financial distress.
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