Hyderabad: About 90 percent of 40,000 hotels and restaurants in Telangana on Tuesday closed protesting the proposed increase in tax under the Goods and Services Tax (GST) regime and seeking to lower it to 5 percent.
According to S Venkata Reddy, president of Telangana Hotels Association, the office bearers also met the State Finance Minister E Rajender who is also member of the GST council and apprised him of their demand.
According to Reddy, the proposed tax would be 5 percent on hotels with turnover up to Rs 50 lakh and for Non-AC hotels- 12 per cent, AC hotels - 18 percent and star category hotels would attract 28 percent.
"We demand the government to classify all the hotels and restaurants into two categories - star and non-star and impose 5 percent on non-star hotels. Today we met our Finance Minister and gave representation," Reddy said.
He said 90 per cent of hotels in Telangana fall under 12 percent and 18 percent regime and that would adversely affect the industry which is said to be third largest sector in the country in terms of providing employment.
He also said future course of action will depend on the outcome of GST Council meeting to be held on June3.(This story has not been edited by News18 staff and is published from a syndicated news agency feed)