GST has left us high and dry, will force us to close: Bengaluru's Darshinis
- As per the new tax rules, small hotels charge 5 per cent GST while medium hotels charge 12 per cent tax
- Many of the small hotels in Bengaluru say they are seeing a drastic drop in regular customers
- While some have not implemented the GST, others are going with the flow. But both claim losses
FollowDarshinis are the favourite addas of middle-class families, especially in Bengaluru. These not-so-big eateries are an integral part of Bengaluru, that serve nearly 'home made' food. But of late, a large number of the Darshinis in the city claim they are witnessing empty tables. Thanks to the GST, they say, even their regular customers are not turning up for the usual idli or coffee.
It has been ten days since the Central government implemented the GST and the hotel industry is claiming to be the 'biggest victim' of the new tax regime - as they are losing customers daily and suffering huge losses, reports Kannada Prabha.
The GST is applicable to the hotel industry in four different categories - 5 per cent on small and medium hotels, 12 per cent on hotels with air conditioners, 18 per cent on restaurants and 28 per cent on star hotels. While a majority of the hotels in the city have not yet implemented the GST (they still have two months' time to include it ), a few others have already modified their prices.
It is reported that small hotels are still charging the old price as they do not want to lose out on customers. But the situation is no different in the hotels that have already revised prices. Hotels are suffering the losses in both instances, reports Kannada Prabha.
"How could we run the hotel when there is no profit in the business? Our regular customers too are thinking twice to visit the hotel. How are we expected to run this business?," rued Manjunath - who runs a small eatery Channaveera Hotel in Muneshwara Block, reports Kannada Prabha.
It is not just the tax that has affected their business, but also a rise in the price of raw materials. As a result, hotels claim they are suffering a  loss of some Rs 18,000 every month. There may be no other way other than shutting down the business, observed Venkatesh, who runs South Ruchi Square at Madhavanagar.
Prior to GST, hotels say they were generating Rs 40,000 to Rs 50,000 per day. But now, they are losing at least Rs 30,000 in a day. "We have suffered a loss of Rs one lakh in these nine days," said Shridhar Kateel, who runs Matrukrupa Hotel at Srinivas Nagar.
"The GST has left an adverse impact on hotels, especially those who serve middle-class families. The hotels are suffering losses every day. The Centre must come out with an alternative to save the hotel industry," said Rajiv Shetty, vice-president of Bruhat Bengaluru Hotel Owners' Association.
