Hotels’ association to donate ₹50 lakh to Anna Canteen Trust

Members of Andhra Pradesh Star Hotels Association (ASHA) decided to donate ₹50 lakh to the Anna Canteen Trust in appreciation of Chief Minister N. Chandrababu Naidu’s support to the tourism and hospitality sector.

The decision was made at the first general body meeting of the association, held in Vijayawada on Monday (November 10). Hoteliers from Tirupati, Vijayawada, Guntur, Kakinada, Rajahmundry, Visakhapatnam and Vizianagaram attended the meeting, held under the leadership of ASHA president R.V. Swamy and general secretary S. Murthy Chittoory. According to a press note from the association, the gesture reflects the “sector’s commitment to inclusive growth and social responsibility”.

The other key issues that they discussed include the demand for industry status for existing hotels, rationalisation of power tariffs, input tax credit under GST. Members urged extension of full industry status to all operational star-category hotels.

According to the press note, the present “commercial” classification denies benefits such as industrial power tariff, concessional property tax, and easier financing. Recognising hotels as an industry will ensure parity and strengthen tourism-driven growth, the association members said.

They also pointed out that the hospitality sector is the only major industry that is denied input tax credit (ITC) under the Goods and Services Tax (GST). They said while restaurants pay 5% GST without ITC, large packaged-food firms such as Cadbury, Nestle, PepsiCo, Britannia, Lays, Haldiram’s enjoy 5% with ITC. They added that denial of ITC for new hotels increases the project cost by 15-18%. The members said they have written to both Union and State Finance and Tourism ministers and continue their efforts until a solution is obtained.

Regarding power tariffs, the members said hotels in Andhra Pradesh are billed under Commercial HT at ₹7.65/unit with no Time of Day tariffs. After taking into account extra charges, it comes to ₹10-₹11 per unit. This is higher than neighbouring States, including Telangana, Karnataka, Gujarat and Maharashtra. The members reasoned that rationalisation would reduce costs, improve competitiveness and attract investment.