Archive · 11 Nov 2025
Star Hotels Association Seeks CM's Help for GST Relief and Lower Power Tariffs
Imagine hotels in a state called Andhra Pradesh are having some problems.
They feel like they are paying too much for electricity, even more than hotels in other places.
They also think that a special tax break called Input Tax Credit was taken away, making it more expensive to build new hotels.
They have asked the big boss, the Chief Minister, for help.
They want him to lower the electricity bills and bring back the tax break.
They even gave some money to a charity that feeds people.
They hope that by making things cheaper and easier for hotels, more tourists will come and visit, which will be good for everyone.
The Andhra Pradesh Star Hotels Association (ASHA) is requesting CM's intervention for GST relief and Input Tax Credit (ITC) restoration.
High electricity tariffs are a significant burden, with rates much higher than industrial users and neighboring states.
ASHA is appealing for a 50% subsidy on municipal taxes and a reduction in electricity charges.
The association announced a donation of Rs 50 lakh to the Chief Minister’s Anna Canteen Trust.
ASHA believes that lower operating costs will stimulate hotel expansion and boost tourism in Andhra Pradesh.
- Who
- The Andhra Pradesh Star Hotels Association (ASHA)
- What
- Seeking help from the Chief Minister for GST relief, Input Tax Credit (ITC) restoration, and reduced electricity tariffs.
- When
- The association held its executive committee meeting recently and plans to make requests to the Chief Minister.
- Where
- Andhra Pradesh, with specific mention of Visakhapatnam (for CII Summit) and Amaravati (for hotel projects).
- Why
- To lower project costs, reduce operating expenses, boost hotel expansion, and encourage tourism growth in the state.
Hotel Industry Concerns
Government Support & Development
Input Tax Credit (ITC)
Hotel Industry Concerns
ASHA states that the withdrawal of ITC has increased project costs by 15-18%. They are seeking its restoration.
Government Support & Development
The government is encouraging tourism development and has granted industry status to the hospitality sector.
Electricity Tariffs
Hotel Industry Concerns
High electricity tariffs (Rs 12-13 per unit) burden hotels, exceeding rates in neighboring states (e.g., Gujarat at Rs 5.5 per unit). ASHA requests a reduction to align with industrial users (Rs 5.5-6 per unit).
Government Support & Development
The government's support for tourism development is seen as encouraging industry growth.
Municipal Taxes
Hotel Industry Concerns
ASHA is appealing for a 50% subsidy on municipal taxes.
Government Support & Development
The government's initiatives in Amaravati and across Andhra Pradesh aim to boost the tourism sector.
- Association
- Andhra Pradesh Star Hotels Association (ASHA)
- Key Issues
- Input Tax Credit (ITC) restoration, reduction in electricity tariffs, municipal tax subsidy
- Proposed Actions
- Requesting CM for central support, seeking relief on power costs and taxes
- Donation
- Rs 50 lakh to Chief Minister’s Anna Canteen Trust
- Electricity Tariff Comparison
- Hotels: Rs 12-13/unit; Industrial users: Rs 5.5-6/unit; Gujarat: Rs 5.5/unit
- Event Mentioned
- CII Partnership Summit, Visakhapatnam (November 14-15)