Bengaluru, 25 Sept

The Karnataka State Hotels Association has expressed its inability to pass on the GST rate cut benefits to consumers as the taxes on LPG cylinders and property rents have not been reduced.

The Association has urged the government to provide relief by reducing the GST on property rent and help hotels survive in the competitive market.

This comes after the GST Council, comprising the Centre and states, decided to reduce tax rates on about 375 goods and services, from 22 September – the first day of Navaratri.

“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,” association President GK Shetty said, welcoming the Centre’s decision.

Shetty pointed out that vegetables, meat and some more items are under 0 per cent GST from the beginning, but the 18 per cent GST on cooking gas cylinders has remained untouched.

“In addition, hoteliers who run their business from rented buildings are paying 18 GST on the rent they pay,” he said.

“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.