Hospitality industry’s apex body Federation of Associations in Indian Tourism and Hospitality or FAITH has handed over its GST representation to the Ministry of Finance in charge for recommending rates to the GST council. These cover air travel agents, business exhibition services, hotel and hospitality services, tour operators, rent a cab and vacation ownership companies. This representation covers strategic, forex, employment, economic and of course GST rationale and rates for tourism, travel travel and hospitality sector of India, FAITH said in a statement.
For hotels and hospitality services, FAITH has requested for a GST rate of 12%.
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For air travel agents, the ministry has requested to continue presumptive rates on all income and to keep GST at 1% or less . For tour operators, the request is to introduce a presumptive rates mechanism of GST at 1.2 % considering difficulty of getting GST input credits from unorganised sector and the burden of compliance of registration with different states.
FAITH has asked to have a GST rate of 5% closest to the current rate and if not possible then 12% for rent a cabs.
For tour operators selling outbound from India the request is to exempt from GST since provision of services are out of India.
For business exhibition selling outbound from India the request is to exempt them from GST since provision of services are out of India. For vacation ownership companies, the request is to have a GST rate of 12%.
For tour operators / hotels / business earning forex, FAITH has suggested to consider a special GST exemption on forex income if it can be a criteria with ministry of finance for GST
For adventure tour operators, FAITH has requested to consider special GST exemption based on J&K and a very high component of local, unorganised labour involved.
The ‘rates fitment’ team will now propose them to revenue secretary who after exploring its merits will propose them to the GST council (Finance Ministers/ Chief Ministers of states and headed by the Finance Minister).
FAITH also stated it has requested the members of all its member associations to engage with key political and bureaucratic leadership of all states to sensitise them to these proposed rates before the next GST council meet on rates fitment.
The Economic Times, 24 March 2017