ALAPPUZHA: Despite the seemly endless efforts by experts to deconstruct the GST, the public, especially those relying on hotel food, have been bamboozled by the new tax regime. More importantly, there is utter confusion about the actual rate.
Moitheen Haji, president, Kerala Hotel and Restaurants’ Association, said the price of hotel food should indeed be increased, but not to the extent provided for in the GST. “The GST of food served in AC and non-AC hotels is 18 per cent and 12 per cent, respectively. The hotel owners are ready to reduce the GST input (the rate cut in raw materials used to prepare food after GST). We are ready to reduce `8 as input credit in AC hotels and `5 innon-AC hotels. So the price will come down,” he said.
“Earlier, the Minister had asked us to slash the price on account of the input credit available This is not true entirely. The GST benefit is available only for the raw materials used to prepare a meal. It comes to only 35-40 per cent of the cost involved. The other charges include the cost of labour, water, power, and rent which are outside the GST,” Moitheen said.