Hotels, Restaurants, Lodges to Remain Closed on May 30 in Bengaluru

Team Udayavani, May 28, 2017, 11:47 AM IST

Bengaluru: Bruhat Bangalore Hotels Association has decided to shut all hotels in the state capital on May 30 to protest against higher tax levied on small hotels, as per the rules of the newly introduced Goods and Service Tax (GST) scheduled to come into force in the country from July, 2017. According to a decision taken in a meeting of the association, as many as 3000 hotels including lodges, restaurants will remain closed on May 30 from 05.00 AM to 11.00 PM.

 According to the newly introduced GST, the government levied 18% tax on all air condition (AC) hotels whereas 12% tax will be collected from non air conditioned hotels and this is expected to impact the business of the small hotels in the state as the customers need to pay higher amount to get normal meals.

According to the GST rules, 5% tax will be levied on the hotels where transaction is below Rs 50 lakh. If the transaction crosses Rs 50 lakh then 12% tax will be imposed on non AC hotels while 18% tax will be collected from AC hotels