Owners want hotels under 5% GST slab

The association has announced a State-wide bandh on May 30 to protest the proposed increase in tax under GST for hotels, which it felt was too high. 

Despite representation to keep the slab at 5% across the board, the GST panel had proposed minimal taxes for the business turnover of below Rs 20 lakh – 5%; for turnover between Rs 20 lakh and Rs 50 lakh, NonAC restaurants – 12% and for AC restaurants – 18% (from the existing 8%), Coimbatore District Hoteliers Association president D Srinivasan said on Thursday. 

Owners have decided to close nearly 1,500 bakeries, 400 restaurants and 300 small eateries in and around Coimbatore in response to the call given by Tamil Nadu Hoteliers Association on May 30, he said.

Stating that Tamil Nadu has a VAT rate of 2%, which would go up to 10% once GST is implemented, Srinivasan said the common man will be hit hard due to proposed increase in the slab on hotel caterogy. Hoteliers’ bodies in Puducherry and Kerala have extended their support to the bandh, he said. Support of Traders Association, which is meeting here on Friday, is also expected, he added.