FAITH urges Union Tourism Minister to discuss GST concerns of the industry with the Group of Ministers

Saturday, February 26, 2022

The Federation of Associations in Indian Tourism & Hospitality (FAITH) has requested the Union Tourism Minister G Kishan Reddy to discuss the goods and services tax (GST) concerns of the industry with the Group of Ministers and evaluate the tax rate structure.

The Federation represents various tourism and hospitality bodies. It said that the sector is “just coming out of its worst phase” and this would be the right time to incentivize both tourism supply and demand.

FAITH has said that hotels should be allowed to charge Integrated Goods and Services Tax (IGST) that will ensure credit availability to all travel agents and tour operators. This in turn will help build sustainable domestic holiday, meetings and conventions business demand.

The industry body said that restaurants need to be to charge GST at 12 per cent with input tax credits. This rate has to be delinked from room tariffs.

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