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FAITH requests changes in GST rates

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The 23rd GST Council meeting is commencing at Guwahati between November 9 and 10, 2017. Federation of Associations in Indian Tourism & Hospitality (FAITH), collectively, along with its member associations and cause partners – FHRAI, IHHA, IATO, HAI, ATOAI, ITTA, ADTOI, TAFI, TAAI, ICPB, AIRDA, is requesting the GST Council to further consider changes to GST laws and rates to make Indian tourism, travel, hospitality and MICE industry more competitive to enable it to become a strategically economic activity for India. The headline recommendations to the 23rd GST Council meeting include:

  • IGST be made available for immovable properties for tourism accommodation such as for hotels, cruises, campsites and for restaurants
  • Rationalise GST on restaurants at 12 per cent from 18 per cent without stopping the flow of input tax credits
  • Treat foreign exchange earnings in tourism services as exports
  • 28 per cent GST on hotels above INR 7,500 be rationalised to 18 per cent and gradually lower in line with global rates
  • An option to discharge under presumptive model maybe extended to travel agents, tour operators who are booking hotel accommodation/ any other tourism products/ tour packages; tour operator to tour operator GST to be made available as it was earlier in the service tax regime
  • Travel and tours services outbound from India should not attract GST as they are in non-taxable territory
  • Services similar to elephant rides, camel safaris, government monuments and such others be at zero per cent rating.