Hoteliers Request Govt for GST Rate Cutting on LPG Cylinders

Hoteliers, for stand-alone restaurants, have requested the government to reduce the hiked Goods and Services Tax (GST) on commercial liquefied petroleum gas (LPG) cylinders, otherwise, it would lead to an unwanted hike in the prices of food items.

Recalling history in a hurry, Between December last year(2020) and March(2021) this year, the price of a 19 kg commercial cylinder shot-up by over INR 300 each. In March, the price of a single 19 kg commercial cylinder is INR 1,730.50 as compared to INR 1446.50 in December 2020.

“An average restaurant with a footfall of 600 persons a day will require five cylinders a day. The government charges GST of 18% for cylinders in star category hotels too but they have input credit, which we do not have. The least the government can do is reduce GST rates for restaurants, said M. Venkadasubbu, president, Tamil Nadu Hotels’ Association.”

Due to the escalation in petrol and diesel prices, the cost of input like tea, coffee powder, cooking oils, dal, and coconuts, etc has also increased by beyond reasonable limit.

Hitherto, a section of tea shops has already increased the price of tea by INR 2 a cup.E. Sundaram, who runs a tea shop in the city said “We are caught between the devil and the deep sea. If we increase prices, the number of customers will decrease. These few tea shops have made the increase without any other option. Prices of tea and coffee powder have also gone up. Private milk brands to have hiked rates,”

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In conclusion, the market is witnessing an escalation in the prices due to an increase in GST rates of LPG.

Also, the input materials like cooking oils, dal, tea, and coffee powder, and coconuts, having increased prices with the fuel, the consumer activist T. Sadagopan said that “Those who cannot afford to buy commercial LPG are now switching over to kerosene or wood-fired stoves. Such high prices will also lead to the diversion of domestic cylinders. Already in the western suburbs, families are using LPG for over 80 days by using wood and selling their spare cylinders to small eateries”