GST Council brings relief for transport and tourism sectors

 Friday, July 1, 2022 


The Goods and Services Tax (GST) Council reduced tax charges on transport by means of ropeways and renting out of goods carriage and excused foreign constituent of tour packages from the tax. This provided a big respite to the tourism and transport sectors.

The council also brought a huge relief for small businesses selling by way of ecommerce means by waiving obligatory GST registration.

The council suggested that GST on the carrying of NSE -1.47% goods and commuters by ropeways should be decreased from 18% to 5% by an input tax credit.

The council disputes that the cause for lesser rates on the transport of goods and passengers is because petrol, diesel and aviation fuel are outside the purview of the GST.

Road transporters will now get the easiness to choose for paying GST at 5% devoid of input tax credit or GST at 12% with such credit. The choice will be obtainable at the commencement of a financial year.

At present, transporting goods by road is subject to GST at the same rates; however, there is no option to change from one rate to the other.

Bringing a much needed respite to varied local and foreign tour packages that are presented to a foreign tourist, the balanced value of the foreign constituent of the tour may not be liable to GST.

At the moment, regarding the tours carried out partly in India and partly outside India like Nepal or Bhutan, GST is charged on the entire package.

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