Urgent Appeal to Cut GST on LPG: Hospitality Sector at Risk

The Karnataka State Hotels Association urges the government to reduce GST on 19-kg commercial LPG cylinders from 18% to 5%, due to a significant price surge. Citing global disruptions affecting supply chains, the association stresses the potential financial strain on the hospitality industry and its impact on employment and economy.

The Karnataka State Hotels Association (KSHA) on Saturday called for an immediate reduction in GST on 19-kg commercial LPG cylinders, from 18% to 5%. The Bangalore Hotels Association (BHA) has also sought Prime Minister Narendra Modi's intervention to address the recent surge in LPG prices and ensure a stable supply.

The request follows a steep price increase of Rs 993 per cylinder, marking three consecutive monthly hikes due to rising global energy costs linked to the West Asian conflict. KSHA President G K Shetty noted that prices have escalated dramatically within 60 days, forcing businesses to consider passing costs onto consumers.

The hospitality sector, still reeling from recent global disturbances and regulatory costs, faces an operational crisis. KSHA stressed that lowering GST would provide crucial relief, helping stabilize prices and support the industry. The associations urged swift governmental intervention to safeguard the sector, vital for employment and economic stability.