Hoteliers have urged the central and state governments to reduce the Goods and Services Tax (GST) on liquefied petroleum gas (LPG) cylinders for stand-alone restaurants. They say that unless GST, which is taken at 18% for refills, is brought down, they have no choice but to raise food prices.
Like the prices of domestic LPG cylinders, the prices of commercial LPG have also increased. Last year from December to March this year in the price of 19 kg commercial cylinder. There was an increase of 300. In March, a single 19-kg cylinder was 1,730.50, while in February, its price. 1,634.50. The unit price was only .50 1446.50 in December 2020.
“An average restaurant with a foot of 600 persons a day would need five cylinders a day. The government also levies a GST of 18% for cylinders in Star category hotels, but they have input credit, which we do not have. M. of the President of the Hotel Association of Tamil Nadu. Venkadasubu said that the government could reduce the GST rates for restaurants.
With preservation of the return to pre-Kovid-19 levels for hotels and numbers below 70%, hotel owners said that raising prices would not be an easy option. “In many cases, about 20% of sales depend on online aggregators, which means that we have to pay them a share of the earnings. Such customers are in search of offers and go for them. ‘
Already, a portion of tea shops have increased the price of tea by 2 cups. “We are stuck between the devil and the deep sea. If we increase prices, the number of customers will decrease. Some of these tea shops have grown without any other options. Prices of tea and coffee powder have also gone up. The rates of private milk brands have also increased. “E. Sundaram, who runs a tea shop in the city.
With the prices of petrol and diesel rising, the cost of cooking oil, pulses, tea and input powder including coffee powder and coconut has also increased. “Those who cannot afford to buy commercial LPG are now switching to stoves made of kerosene or wood. Such high prices will also lead to diversion of domestic cylinders. Already in the western suburbs, families have been using LPG for 80 days by using wood and selling their spare cylinders in small eateries, ”consumer activist T. Sadagopan said.
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