VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has urged Union Finance Minister Nirmala Sitharaman to reduce GST on commercial LPG cylinders for the hospitality sector from 18% to 5%.
In a release on Friday, AP Chambers President Potluri Bhaskara Rao said hotels and restaurants, particularly MSME establishments, were facing severe financial stress due to steep increases in commercial LPG prices. He said the price of a 19-kg commercial LPG cylinder in AP had reached nearly `3,200 from May 1, 2026, following cumulative hikes of around `1,500 in the past four months.
The Chamber stated that many hotels and restaurants operate under the 5% GST category without effective input tax credit benefits, while commercial LPG attracts 18% GST, creating an inverted tax burden.
AP Chambers said rising LPG prices and increasing raw material costs had pushed operating expenses up by nearly 25%, forcing some establishments to restrict menus while smaller units faced possible closure.