T3 site is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Podcast Streaming Now

HomeNewsIndia TourismFAITH Urges Tourism Minister to Raise GST Issue with the Group of...

FAITH Urges Tourism Minister to Raise GST Issue with the Group of Ministers

 

Umbrella association FAITH has requested Tourism Minister to take up the GST rates issues of tourism, travel and hospitality with the Group of Ministers (GOM) evaluating the entire GST rate structure.

 

FAITH mentioned that since the Indian tourism, travel and hospitality industry is just starting to come out of its worst phase, this is the right time to incentivise both tourism demand and tourism supply through rationalisation of GST measures.

 

The following top concerns have been highlighted

 

1.       Hotels to be allowed to charge IGST which will enable seamless availability of credit across India to all travel agents and tour operators and will thereby lead to building up a sustainable domestic holiday and meetings and conventions business within the country.

 

2.       Tour operators to be enabled a special presumptive GST rate of 1.8% with full GST setoffs. The current rate of 5% without setoffs structurally implies that tour operators have an inbuilt margin of around 27.8% which is an inherently flawed assumption in the internet economy.

 

3.       Travel Agents bealso allowed the option of exploring the reseller model for charging as they are distribution arms for airlines. This option will enable travel agents to structure optimal partnerships as per their business requirements between their clients and their airline partners.

 

4.       Tourist transporters be allowed the provision for availing GST setoffs on interstate Tourist transport taxes, taxes on parking fees and on taxes on fuel which is their biggest input costs.

 

5.       Restaurants should be also allowed the option of charging GST at 12% with full Input tax credits and the rate should be delinked from any room tariffs if they are part of hotels.

 

6.       GST refund on purchases by foreign tourists to be implemented as already enacted under GST. – Tax Refund for Tourists (TRT) Scheme of the IGST Act and its applicability should be ensured across all the product and tourism services availed by them in India. This will prevent India from exporting its taxes on tourism and will increase our global competitiveness in world tourism. 

7.       Tourism, travel & hospitality players must be allowed to get a refund of any unutilised GST credit lying with state governments which will enable them to get much needed liquidity.

 

FAITH said that these rationalisation measures will provide a stepping stone for the Indian tourism travel and hospitality industry once it attempts its multi-year journey back to recovery.

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!
RELATED ARTICLES

SOCIAL FOLLOWERS

FansLike
FollowersFollow

GALLERY

slide2
slide3
slide4
slide5
slide6
slide7
slide8
slide9
slide10
slide11
slide12
slide13
slide14
slide15
slide16
slide17
slide18
slide19
slide20
slide21
slide22
slide23
slide24
slide25
slide26
slide27

Upcoming Events

NEWSLETTER

    Appointment