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TSHA welcomes reduction of GST from 18% to 5% on Hotels and Restaurants

Hyderabad, 17th November 2017: The Telangana State Hotels and Associations members have expressed their happiness over the central government’s initiative to reduce the Goods and Services Tax (GST) on Hotels and Restaurants from 18 per cent to 5 per cent with immediate effect from 15-11-2017. 


Mr. Siddi Venkat Reddy, President of Telangana State Hotels Association said, “Imposition of 12-18 per cent of GST on Hotel Industry was justifiable and it impacted drastically on the growth of the Hotels, Tourism and Even management sector, which all came to a standstill during the past 5 months. However, we are thankful to efforts of Mr. Etala Rajender, Finance minister of Telangana and GST council member, Mr. Jitender Reddy, TRS Parliamentary Floor leader and MP and Dr. Palla Rajeshwar Reddy, MLP and Government whip, govt of Telangana, who all represented our concerns to the GST council and the central government and convinced them to bring down the GST from 18 per cent to 5 per cent.” 


As it is known that the central government as part of its efforts to bring in reforms in taxation system in the country abolished the multiple tax regime like VAT, Service Tax, etc and brought in a single taxation regime called GST on 1st of July 2017. However, post imposition of GST regime the Hotels and Restaurants Industry has been hit hard as the GST council has imposed a whooping 12-18 per cent tax on the Hotel Industry. Because of this, the growth in the hotel industry has come to a halt during the past 5 months. 


In view of this, the members of Telangana State Hotels management represented their problems and issues to the Chief Minister of Telangana K. Chandrasekhara Roa and Etala Rajender, Finance Minister of Telangana and explained them how the Hotel industry has come to a standstill due to loss of business due to excess taxation. However, with the central government deciding to reduce the GST on Hotels, the members of Telangana State Hotels Association (TSHA) not only hailed the efforts of Telangana leaders but also extended their thanks to Arun Jaitly, Finance Minister and Narendra Modi, Prime Minister of India for understanding the gravity of the problem and reduced the GST for Hotel Industry.