Hotels, restaurants to down shutters on May 30

Hotels, restaurants to down shutters on May 30
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Highlights

Andhra Pradesh Hotels Association state president M Srinivasa Babu has demanded that the central government must reduce the GST on the hotels and restaurants in the state and other states of India from the proposed 18 per cent to 5 per cent.

Vijayawada: Andhra Pradesh Hotels Association state president M Srinivasa Babu has demanded that the central government must reduce the GST on the hotels and restaurants in the state and other states of India from the proposed 18 per cent to 5 per cent.

Highlights:

  • Andhra Pradesh Hotels Association leaders demand that Central government slash the GST rate from 18 to 5 percent
  • Thousands of hotels in Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Karnataka and Pondicherry will observe bandh on May 30 protesting against this move

He said thousands of hotels in Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Karnataka and Pondicherry will observe bandh on May 30 protesting against this move. Referring to Andhra Pradesh, M Srinivasa Babu, said over 25,000 hotels and restaurants in the State would suffer if the Central Government collects 18 per cent GST on the food bills.

The Andhra Pradesh Hotels Association leaders addressing a media conference here on Saturday said the state government used to collect only 5 per cent tax on the food bills in the hotels and restaurants till now. He said middle class consumers will suffer a lot if the GST is fixed at 18 percent on hotel bills.

He recalled the hotel industry suffered many problems due to demonetisation of high value notes for six months and now only these hotels are recovering from the losses. He said the AP government is collecting VAT on the hotels which has turnover of more than Rs.1.50 crore. Now, the hotels which has turnover of Rs.20 lakh per year will also fall under the purview of GST. He said the hotels must upload the details of the sales and bills if the business exceeds Rs.5000 in a day.

He said the Hotels Association had taken the issue to the notice of the Finance Minister Arun Jaitley, Union Urban Development minister M Venkaiah Naidu, Chief Minister Nara Chandrababu Naidu and many other leaders and requested the latter to concede their demand and slash the GST from 18 per cent to 5 percent.

Vijayawada Hotels Association President Muppa Venkateswara Rao has expressed apprehensions that hotels may face many problems in future due to GST. He said the hotel owners may be sent to jail if the rules are not followed properly due to new rules. AP Hotels Association Joint Secretary K Ramgopal, Association treasurer K Srinivas and others were present at the press meet.

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