The Andhra Pradesh Star Hotels Association (ASHA) has urged the State government to take up with the Centre a set of key Goods and Services Tax (GST) issues impacting the hospitality sector, including a reduction in GST on commercial LPG cylinders and the restoration of Input Tax Credit (ITC). The industry body said these measures are essential to ease rising operational costs and improve the competitiveness of hotels and restaurants.
A delegation led by ASHA President R.V. Swamy met Andhra Pradesh Civil Supplies Minister Nadendla Manohar on Thursday and submitted a detailed representation highlighting the financial challenges faced by the hospitality industry under the current GST framework.
One of the key demands raised by the association was a reduction in the GST applicable to commercial LPG cylinders. According to the delegation, the tax burden on commercial LPG has significantly increased operating expenses for hotels and restaurants, especially amid rising fuel costs. The association said that commercial LPG is a critical input for the hospitality sector and sought tax relief to reduce the cost pressure on businesses.
The delegation also strongly advocated for the restoration of Input Tax Credit (ITC) for the hospitality industry under the GST regime. It argued that the withdrawal of ITC has substantially increased both operational expenditure and capital investment costs, making hotel operations more expensive and reducing the sector’s competitiveness.
ASHA stated that restoring ITC would provide meaningful financial relief to hospitality businesses by lowering their effective tax burden and encouraging further investments in the sector. The association maintained that the current tax structure has placed an avoidable financial strain on hotels and restaurants, particularly those recovering from recent economic challenges.
Seeking the State government’s support, the delegation requested that Andhra Pradesh take up these issues with the Union Government during discussions on GST reforms. The association expressed confidence that the State leadership, under Chief Minister N. Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan, would effectively advocate for the industry’s concerns before the Centre.
Civil Supplies Minister Nadendla Manohar reportedly gave a patient hearing to the delegation and assured its members that the issues raised in the representation would be examined carefully and pursued at the appropriate level.
The delegation included Nageswara Rao, General Manager of Vivanta, Visakhapatnam; Murthy Chittoory, General Secretary of ASHA; M.V. Pavan Kartheek, Joint Secretary of the association; and Sharan, Managing Director of GRT Vijayawada.
The hospitality industry has been consistently seeking GST rationalisation, arguing that a more favourable tax regime—particularly on essential inputs such as commercial LPG and through the restoration of Input Tax Credit—would reduce operating costs, promote investment, and support the long-term growth of tourism and hospitality in the country.
