Himachal: Considering implementing new rules for homestays operating in urban areas: The proposed rules include charging commercial rates for electricity and water

Shimla, July 25: The Himachal Pradesh government is considering introducing new rules for homestays operating in urban areas. The proposed rules include charging commercial rates for electricity and water, aimed at standardising the operations of homestays and ensuring a fair contribution to the state’s revenue.

However, this decision will not have any impact on homestays in rural areas. The Cabinet sub-committee discussed the proposal in its second meeting and plans to send its suggestions to the Cabinet for final approval.

The state government has constituted a cabinet sub-committee to regulate homestay activities, which will submit its report after another meeting scheduled next week. During the recent meeting, the committee deliberated on a proposal to impose commercial charges for utilities in urban homestays, leaving rural homestays exempted from this rule.

“The sub-committee is still in the discussion stage, and the final decision will be taken by the Cabinet,” a source said. “The recommendations will include amendments to the existing rules so that homestay operations can benefit the state government.”

Currently, there are over 4,000 homestay units operating in Himachal Pradesh. The government aims to introduce new provisions to bring these units under regulatory compliance, to ensure that the state gets due benefits from the growing homestay sector. Despite GST being paid by these units, the state government is not getting adequate benefits. Additionally, many units are using electricity and water at domestic rates, which the new rules aim to change for urban homestays.

There are also concerns about unauthorised homestays operating without following the rules. The committee discussed ways to address these issues, including strict enforcement of licensing and compliance with established rules.

Monday’s meeting was chaired by Industry Minister Harshwardhan Chouhan, and was also attended by Public Works Minister Vikramaditya Singh and Panchayati Raj Minister Anirudh Singh. Labour Department Commissioner Manasi Thakur gave a detailed briefing on the current status of homestay units. Thakur highlighted the significant number of homestays in urban areas and the possible decision to apply commercial rates to their utilities.

The proposed changes reflect the government’s effort to regulate the homestay industry, ensuring that urban homestays contribute appropriately to the state’s revenue, while maintaining support for rural homestay operators. The final decision of the Cabinet will determine the implementation of these new regulations.

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