AP Chambers Seeks GST Cut on Commercial LPG for Hospitality Sector
The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has urged the Centre to reduce GST on commercial LPG cylinders used by the hospitality sector from 18% to 5%, citing increasing financial pressure on hotels and restaurants, especially MSME establishments.
In a representation submitted to Union Finance Minister Nirmala Sitharaman, AP Chambers stated that the continuous rise in commercial LPG prices has severely affected the viability of budget and mid-segment hotels and restaurants across Andhra Pradesh and the country.
According to AP Chambers, the price of a 19-kg commercial LPG cylinder in Andhra Pradesh has increased to nearly Rs.3,200 after the latest revision effective from May 1, 2026. The organization stated that cylinder prices have increased by around Rs.1,500 over the past four months.
AP Chambers said commercial LPG has become one of the largest operational expenses for hotels and restaurants, placing the hospitality sector under tremendous pressure.
