Restructure GST rates for hotels, says tourism body

Panaji: The GST rates for the hospitality sector need to be rationalised and in the long term, room tariffs should be delinked from the tax levied on dining services at hotels and resorts to compete with international tourist destinations, said the Travel and Tourism Association of Goa (TTAG).

An increase in the threshold for 18% GST for hotels, easy visa approvals and simplified licencing are on the wishlist that the TTAG presented to the tourism department at the 35th installation ceremony for the new president and managing committee.

Jack Sukhija took charge as the new president of TTAG.

“We would like govt to increase the threshold for GST of 18% to Rs 18,000 on room tariff. Hotels with room tariffs above Rs 7,500 have to collect GST at 18% for restaurant services with full input. This creates anomalies and confusion and gives opportunities for rent-seeking,” said Sukhija.

The GST Council has ruled that a restaurant will have to charge a GST of 18% if it is located on the premises of a hotel where the per day room charges are Rs 7,500 or more.

 

“Room tariffs should be delinked from GST levied on restaurant services,” Sukhija further said. He was speaking in the presence of tourism minister Rohan Khaunte and tourism director Suneel Anchipaka.

Sukhija pointed out that foreign tour operators and travel agents do not have to pay GST, which puts Indian tour operators and agencies at a disadvantage.

“The international market in Goa has revived to the extent of 45% since the Covid days, which is much better than the 30% that it has rebounded in India. But we still need support from govt,” said Sukhija.

He also said that visa-free entry and visa-on-arrival facilities are ways to attract more international tourists to Goa.

“Today, visas have become a source of competitive advantage. Thailand, Sri Lanka, Malaysia and even China offer free visa or seamless visa processing for many nationalities,” said Sukhija.

Source::: THE TIMES OF INDIA,  dated 26/05/2024.