Published on : Friday, May 21, 2021
Before the GST Council meeting on May 28, associations representing the travel, tourism and hospitality industry have urged the government and the chief economic advisor to trim down GST across the tourism value-chains for supporting recovery and healing of the sector which has been severely damaged by the pandemic.
The federation of associations in Indian tourism and hospitality (FAITH) said that the government needs to kick off the process of reviewing and rationalizing GST applicable to the travel industry. The association also suggested various measures for resurrecting India’s travel industry.
FAITH said that hotels should be allowed to charge 12% GST with full set-offs, irrespective of tariff categories. This will make sure that the GST applicable on tariffs in Indian hotels becomes competitive not only in the immediate neighborhood, but also globally.
FAITH said that hotels should also be allowed to charge Integrated GST to facilitate faultless availability of credit to all travel agents and tour operators.
FAITH stressed that the implementation of GST-Tax Refund for Tourists (TRT) Scheme should apply to all tourism products and services in India. “This will prevent India from exporting its taxes on tourism and will increase our global competitiveness in world tourism,” FAITH opined.