KHRA urges complete GST exemption on rent for hotels, calling for relief for those under the regular GST scheme, as the current tax system causes financial losses and liabilities for hotel owners.
Kochi: The Kerala Hotel and Restaurant Association (KHRA) has welcomed the partial relief provided to hotels under the GST composition scheme, where rent paid for properties rented from unregistered building owners is exempt from GST. However, the association has urged that this exemption should also apply to hotels under the GST regular scheme.
According to GST law, hotels are classified under the service sector, and are not eligible for input tax credit. As a result, the GST on rent, if levied on the hotel owner, leads to financial losses and additional liabilities. KHRA has called on the Finance Minister and the GST Council to address this issue and provide relief to the hotel industry. This request was submitted by KHRA State President G. Jayapal and General Secretary K.P. Balakrishnan.
