Raise tourism GST concerns with GOM, FAITH tells G Kishan Reddy

The Federation of Associations in Indian Tourism & Hospitality (FAITH) has requested Tourism Minister G Kishan Reddy to take up the GST rates issues of tourism, travel and hospitality sectors with the Group of Ministers (GOM) evaluating the entire GST rates structure.

FAITH, the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India like ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI, pointed out 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 supply through rationalisation of GST measures.

It urged the hotels 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/conventions business within the country.

“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,” FAITH said in a press statement issued here on Thursday.

“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. 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,” it said.

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.

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