Take up GST cut on commercial LPG with Centre, hoteliers ask Andhra government
The Andhra Pradesh Star Hotels Association has requested the state government to lobby the central government for a reduction in GST on commercial LPG. They are also seeking the restoration of Input Tax Credit to alleviate financial strain on the hospitality sector.
Why it matters
This highlights the ongoing tension between industry operational costs and current tax policies in India's hospitality sector.
A delegation of the Andhra Pradesh Star Hotels Association (ASHA), led by its president R.V. Swamy, met Civil Supplies Minister Nadendla Manohar on Thursday (July 9, 2026) and urged the State government to take up with the Centre key Goods and Services Tax (GST)-related issues affecting the hospitality industry.
The delegation submitted a representation seeking a reduction in the GST on commercial LPG cylinders , saying the existing tax burden had sharply increased operating costs for hotels and restaurants. They said the high GST on commercial LPG had added to the financial strain on the sector.
The association also appealed for the restoration of Input Tax Credit (ITC) under the GST regime for the hospitality industry. It said the withdrawal of ITC had significantly increased operational expenses as well as capital investment costs for hotels, making the sector less competitive and imposing an additional financial burden on businesses.
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