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November 2017
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Kerala News
Hotels cautioned against charging high rates
 
Finance Minister T.M. Thomas Isaac has cautioned hotels and restaurants against charging higher rates citing the implementation of the Goods and Service Tax (GST) regime.

In an official statement here, Dr. Isaac said it had come to the government’s notice that some hotels and restaurants had hiked their costs. The government would try to sort out the issue through dialogues with the representatives of hotel and restaurant owners’ organisations. He urged the hotels to fix rates in a responsible manner in accordance with the law.

He said that it was not possible for traders to sell goods above the maximum retail price in the name of GST. He said the government would also examine the complaints regarding the hike in cinema ticket rates.

The Kerala Hotel and Restaurant Association said the Finance Minister’s observations about GST had created a confusion in the minds of hotel owners and customers. Association president Moideenkutty Haji and general secretary G. Jayapal said the Minister’s statement that GST would lead to reduction in prices of several commodities and therefore hotels and restaurants need not levy GST, was misleading.

Two days after the GST regime came into being, the prices of commodities had not come down. The association said hotels and restaurants were willing to stop collecting GST if the Minister cleared the confusion.


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