No GST Relief for Karnataka Hoteliers Amid Rate Cuts

The Karnataka State Hotels Association has declared its inability to transfer GST rate cut benefits to consumers. Despite recent reductions on some goods, persistent high taxes on LPG cylinders and property rents remain a barrier.

The Association is pushing for government relief, particularly a GST reduction on property rents, which would help hotels remain competitive. While the GST Council reduced rates on a range of items beginning September 22, tax on cooking gas and rents has yet to change.

G K Shetty, the association's President, acknowledges the reduced GST on certain items but highlights that hoteliers face significant hurdles without rent relief. Most restaurants operate from rented premises and incur an 18% GST on rents. A reduction to 5% could allow rent savings to be passed to consumers.

(With inputs from agencies.)