The South Goa Hotel and Restaurant Owners' Association (SGHROA) convened a general body meeting recently and have planned to approach Manohar Parrikar, Chief Minister with their grievances before the upcoming budget session of the assembly.
At the meeting, members of the middle and lower grade hoteliers unanimously agreed on a five-point agenda. A memorandum conveying their position has already been sent to Parrikar. The association wants the VAT on LPG to be reduced to 5 per cent, so that their burden will be reduced. C P Jaggi, President, SGHROA pointed out that for composition tax, hotels should be classified on the basis of turnover. He added that the sale of cold drinks and ice-cream should be exempted from composition tax, since the distributors have already collected VAT at 20 per cent, according to a TOI report. SGHROA protested against graded hotels offering free breakfast to room occupants. "On the free breakfast, the hotels do not pay any VAT at 12.5 per cent or composition at the rate of 5 per cent. Thereby, the state loses revenue," said Jaggi, pointing out that in the absence of such an incentive, guests would have to have breakfast at their restaurant, which has to pay the taxes accordingly.
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At the meeting, members of the middle and lower grade hoteliers unanimously agreed on a five-point agenda. A memorandum conveying their position has already been sent to Parrikar. The association wants the VAT on LPG to be reduced to 5 per cent, so that their burden will be reduced. C P Jaggi, President, SGHROA pointed out that for composition tax, hotels should be classified on the basis of turnover. He added that the sale of cold drinks and ice-cream should be exempted from composition tax, since the distributors have already collected VAT at 20 per cent, according to a TOI report. SGHROA protested against graded hotels offering free breakfast to room occupants. "On the free breakfast, the hotels do not pay any VAT at 12.5 per cent or composition at the rate of 5 per cent. Thereby, the state loses revenue," said Jaggi, pointing out that in the absence of such an incentive, guests would have to have breakfast at their restaurant, which has to pay the taxes accordingly.
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