Hotels’ assn urges GST cut on rent, LPG to pass benefits to customers

The Karnataka Hotels Association has expressed concern that despite the recent reduction in GST rates on nearly 375 goods and services, customers are not seeing real benefits because taxes on LPG cylinders and property rentals remain unchanged.

Association president G.K. Shetty said that while the government’s move to cut GST on many products is welcome and will help the general public, the hospitality sector continues to face a heavy burden.

“People are asking when hotel food and room rates will be reduced. Without relief from the government, hotel owners cannot lower prices at this stage,” Shetty explained.

The association pointed out that most restaurants and hotels in Karnataka operate out of rented buildings and are required to pay 18% GST on rent. Similarly, LPG cylinders used for cooking still attract 18% GST, preventing hoteliers from lowering operational costs.

“If GST on rentals is reduced from 18% to 5%, we can immediately pass the benefits on to customers. But under the current rates, it is simply not possible,” Shetty added.

The association has urged both state and central governments to consider lowering GST on key inputs like LPG and rentals to ensure hotels can survive in a competitive market and provide affordable services to consumers.