After weeks of intensive internal discussions and brainstorming sessions on GST among all its member associations and FAITH, discussions have now reached a definitive stage. They have handed over their GST representation to the team in the Ministry of Finance in charge for recommending rates to the GST council. These cover; Air travel agents, business exhibition services, Hotel & hospitality services, Tour operators, Rent a cab & Vacation ownership. This representation covers strategic, forex, employment, economic & of course GST rationale & rates for tourism, travel & hospitality sector of India.
Hotels & Hospitality services: Request to have a GST rate of 12%
Air travel Agents: Request to continue Presumptive rate on all income and keep GST at 1% or less
Tour Operators: Request to introduce a presumptive rates mechanism of GST at 1.2 % considering difficulty of getting GST input credits from unorganised sector & the burden of compliance of registration with different states
Rent a cab: Request to have at GST rate of 5% closest to the current rate & if not possible then 12%
Tour operators selling outbound from India: request to exempt from GST since provision of services are out of India
Business exhibition selling outbound from India: request to exempt from GST since provision of services are out of India
Vacation ownership: Request to have a GST rate of 12%
Tour operators / hotels / business earning forex: request to consider a special GST exemption on forex income if it can be criteria with MOF for GST
Adventure tour operators: request to consider special GST exemption based on J&K & a very high component of local, unorganised labour involved.
The ‘rates fitment’ team will now propose them to revenue secretary who after exploring its merits will propose them to the GST council (Finance Ministers/ Chief Ministers of states & headed by the Finance Minister.
Parallely, FAITH has requested the members of all its member associations to engage with key political and bureaucratic leadership of all states to sensitise them to these proposed rates before the next GST council meet on rates fitment.
