The Karnataka 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 president. Most hotels and restaurants operate from rented premises, paying 18% GST on rent, which limits their ability to adjust tariffs.
Himachal Pradesh hotels request PM intervention
The Federation of Himachal Hotels and Restaurant Association (FOHHRA) has approached Prime Minister Narendra Modi seeking immediate relief measures for the hospitality sector, which has been severely impacted by excess rainfall, cloudbursts, flash floods and landslides. The state suffered Rs 4,861 crore in losses during the current monsoon, with previous years' disasters causing even higher damage.
The association urged the Prime Minister to ensure enforcement of RBI and MSME restructuring frameworks, halt SARFAESI proceedings against defaulting hoteliers, provide interest subvention, implement a temporary moratorium on principal and interest payments, and enable long-term hotel loans of up to 20 years. The letter also requested reversal of excess interest and penal charges and protection against asset downgrades without tangible collateral.
Tourism sector under strain
Himachal Pradesh’s economy is heavily tourism-dependent, supporting hoteliers, transporters, guides and local vendors. Many small and medium operators have already shuttered due to repeated disasters, economic challenges, and unaffordable high-interest loans. Banks are reportedly charging interest rates up to 15%, while SARFAESI actions continue against compliant MSME borrowers, aggravating the sector’s financial distress.
Industry leaders stressed that unless GST on property rent and essential services is reduced and financial support frameworks are fully enforced, the tourism and hospitality ecosystem may face long-term disruption.
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