Karnataka State Hotels Association Welcomes GST Council’s Reforms
Bengaluru: The Karnataka State Hotels Association (KSHA) has issued a formal statement expressing its strong approval of the recent modifications to the Goods and Services Tax (GST) framework enacted by the GST Council. The association specifically lauded the proposed tax reductions, anticipating a substantial positive impact on the nation’s economic trajectory.
Mr. G.K. Shetty, President of the KSHA, conveyed in the official statement that these reforms effectively address persistent requests from the hotel and tourism industries, which have now been met by the Central Government and the GST Council.
The revised GST framework includes a reduction in the tax burden applied to essential commodities utilized within the hotel sector. These items encompass a range of goods, including diabetic foods, mushrooms, ice cream, chocolates, bread, parotta, vegetables, fruits, and grain-based products. Furthermore, the GST rate applicable to hotel rooms priced up to ₹7,500 has been reduced from 12% to 5%. Mr. Shetty emphasized that these specific adjustments are anticipated to act as a catalyst for growth within both the hotel and tourism sectors.
“On behalf of the KSHA and in my personal capacity, I extend our sincere congratulations to the GST Council, Hon’ble Prime Minister Shri Narendra Modi, and Hon’ble Finance Minister Smt. Nirmala Sitharaman for this landmark decision,” stated Mr. Shetty.
He further elaborated, “The sustained advocacy efforts of our association have culminated in the realization of these long-sought demands.”
Mr. Shetty also addressed an ongoing concern of the association: “A critical issue that persists is the 18% GST currently levied on rent for hotels and restaurants operating in rented buildings. We respectfully implore the Central Government and the GST Council to consider a reduction in this rate as well.” The KSHA views this adjustment as crucial for further stimulating growth and investment within the hospitality sector.