BENGALURU: Most of the 3000 and odd hotels in Bengaluru had shut down on Tuesday as the hoteliers association had called for a dawn-to-dusk bandh in protest against the steep tax rates under the impeding Goods and Service Tax GST ) expected to kick off on July 1.Claiming over 90% of the hotels and restaurants were shut, Bangalore Hoteliers Association said the 'bandh' was successful."The bandh was successful by and large. While there are over 3000 licensed hotels registered with the association, even non-members also took part in the bandh,” said P C Rao, vice-president of Bangalore Hoteliers Association.At present, the hotels and restaurants in Karnataka attract 4% composite tax (COT) irrespective of their turnover. In the GST regime, 5% COT will be levied on hotels with the annual turnover less than Rs. 50 lakh and non-AC restaurants with turnover above Rs. 50 lakh will attack 12% GST and AC restaurants will be levied 18% GST. While the present COT is not collectible from customers, the tax is collectible from customers in the GST regime that would result in food served in both non-AC and AC restaurants dearer."More than the hotel industry, the GST rates will be burdensome for customers. Eating out will be expensive for them. Our demand is that all hotels including non-AC and AC restaurants levied 5% composition tax," said Rao.While the shutdown was limited to Bengaluru in Karnataka, restaurants in neighbouring states of Tamil Nadu, Puducherry, Kerala and parts of Telangana and Andhra Pradesh also observed bandh.Canteens in hospitals and workplaces had been exempted from the bandh call and the hotels resumed business after 6 pm.A delegation of hoteliers met Union revenue secretary Hamukh Adhia, who was in Bengaluru for an interactive session with traders on GST, and submitted a memorandum to him.Responding the representation, Adhia said the GST rates on hotels were justified as they were decided on basis of the national average of the existing tax rates."The GST Council did not go by the existing tax rates in one particular state such as Karnataka while deciding on the GST rates. It considered the tax rates in all other states and arrived at an average rate. For instance, 4% COT is being levied on restaurants in Karnataka, while in most of the states the tax rate is 14.5%," said Adhia.Speaking on the occasion, agriculture minister Krishna Byre Gowda, who represents Karnataka in the GST Council, said over 90% of the restaurants in Karnataka will be in the lower slab of 5% COT and there is no cause of concern."In Karnataka there are 13,669 restaurants out of which only 764 are with the turnover above Rs. one crore. And 676 restaurants are with the turnover between Rs. 50 lakh and Rs. 1 crore. So, over 12,000 restaurants will be still under 5% COT. And there would not be a big change in the existing situation,” said Gowda.