12% GST on budget rooms will impact business: Bengaluru hoteliers association

The hotel industry in Bengaluru has said that the 12% GST on rooms with less than Rs 1,000 daily rent will hit the sector badly.

A press release by the Bruhat Bangalore Hotels Association has stated that the GST rate of 12%, as decided in the 47th GST Council meeting, would hit common people looking for budget accommodation in hotels.

The association has submitted a request to the Secretary and Finance Minister regarding the matter, but they have got no response as yet.

'Necessity, not luxury'

“Sometimes we need hotel rooms. It is a necessity, not a luxury. The common people are affected by this charging of GST,“ said Veerendra Kamat, Secretary of the Bruhat Bangalore Hotels Association.

Speaking to DH, PC Rao, president of the Bruhat Bangalore Hotels Association, said, “We gave our representation to the Karnataka Tourism Society… we’ve requested that all the South Indian state hotel associations will go and meet the secretary and finance minister very shortly, within two weeks.

The notification has not yet come, but only recommendations from the GST Council have been announced,” said.

Bookings will be hit

The owner of a hotel in Majestic said the hotel industry will be badly hit, “We are still recovering from the losses we incurred during the pandemic. This will further impact bookings and it will affect people who are looking for affordable rooms. It will impact us even more because our maintenance remains the same”.