GST Badly Affecting Indian Outbound Travel Industry

gst travel industry

The Indian Outbound Travel Industry is going through very difficult times because of the present GST regime and the Indian Government urgently needs to relook the GST in regard to Outbound and Inbound tourism as this tax will cause loss to tourists and operators while affecting the forecasted 50 million Indian outbound travelers by 2020,” Gurdeep Singh Sahni, President, Outbound Tour Operators Association of India (OTAI), said at the OTM 2017 here on Thursday.

Describing GST as a Dual Taxation Flaw that needed to be avoided by the Government for the benefit of the travel industry, he said, “The Indian Government has not looked into outbound tourism, which does not get tax refunds, besides travel getting expensive and around one million jobs in the travel industry getting impacted because of GST. They have probably overstepped their view.”

Sahni said, “The Government of India will have to separate tourism into two categories – one is Domestic and Inbound tourism, and the other is: Outbound Tourism. The intention of GST is that people get the credit of the taxes we have already paid. And then we would be taxed with only added value. Unfortunately, in Outbound tourism, we don’t get any credit. So whatever you tax, it will add onto us and we will become uncompetitive with people sitting outside India.”

” So whatever we have created for all these years, you are gifting it to people outside India because Modiji has gone everywhere and he wants to gift it to them? The thing is the whole industry is going out of India because jobs, tourism, revenue and entire outbound tourism industry will be impacted.” he said.

Millennium Post, 24 February 2017

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