Hotels observe bandh against GST slab rate

Tuesday, May 30, 2017 
Visakhapatnam

Over 2,000 restaurants observed bandh in the city today in protest against heavy GST rate proposed on them.

Some Star hotels too expressed their solidarity with them by closing their restaurants for some time. The shutdown was part of a strike called by the hoteliers’ association it the entire South India.

As per earlier system, the State was charging 5% VAT on turnover below Rs.1.40 crore. For AC restaurants service tax used to be extra. Now as per the new system, it will be 5% for turnover below Rs.50 lakh and for above Rs.50 lakh, it will at 18%.’ Whatever tax is collected, it is passed on to the customers if more tax is imposed the customers will be forced to go to roadside eateries where zero tax is collected said Visakha Hotel Merchants’ Association secretary T.Janaradhana Rao.