Vijayawada: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) and the AP Star Hotels Association on Friday urged the Centre to restore the GST Input Tax Credit (ITC) for the hospitality sector and reduce GST on commercial LPG cylinders from 18 per cent to 5 per cent.
They said the existing tax structure has significantly increased operational costs for hotels and restaurants.
A delegation of these entities met Tourism Minister Kandula Durgesh here and submitted a memorandum highlighting the issues affecting the hospitality industry.
They said hotels and restaurants using commercial LPG cylinders are at a disadvantage compared to establishments using piped natural gas, as they incurred higher operating costs. A call was made to the minister to recommend the Centre a reduction in GST on commercial LPG to ensure a level playing field for businesses in the sector.
The delegation stressed the need to restore GST Input Tax Credit for the hospitality industry. They said the withdrawal of ITC has led to a sharp increase in operating and capital expenditure, while rental costs have risen by 20 per cent, placing severe financial pressure on hotels and restaurants functioning on thin profit margins.
Responding to the requests, the minister assured the delegation that the government would take up the industry’s concerns with the Centre and forward appropriate recommendations seeking relief for the hospitality sector.
The delegation also thanked the minister for extending full support to the AP Travel Agents Meet / Inbound Tourism Conclave, scheduled for July 14 at Berm Park Haritha Resort in Bhavanipuram, Vijayawada. The conclave is being jointly organised by the Tours and Travels Association of Andhra Pradesh, AP Star Hotels Association, AP Chambers of Commerce and Industry Federation, the Association of North Andhra Domestic and Inbound Tourism, and the state tourism department.
Those present at the meeting included AP Chambers advisor Lakshminarayana, president P Bhaskara Rao, AP star hotels association president RV Swamy, general secretary S Murthy Chittoori, joint secretary MV Pawan Karthik and tourism committee member Kalyani Kakani, among others.
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