Panaji: Ahead of Goods and Service Tax Council meeting scheduled to be held in Goa on September 20, the tourism stakeholders from the state have reiterated their demand to reduce the tax on room tariffs from 18 percent to 12 per cent.
Travel and Tourism Association of Goa (TTAG), a union of tourism stakeholders, had given representation to Union Tourism Minister Prahlad Singh Patel, Goa chief minister Pramod Sawant and minister Mauvin Godinho who represents the state on GST Council.
The tourism bodies have been demanding that the GST on room tariff be reduced from 18 per cent to 12 and in some kind of rooms from 28 per cent to 12 per cent.
The TTAG in a press statement here has said that reduction in GST on room tariffs will help the industry to compete globally as some of the countries have taxation as low as six to eight percent.
The tourism body has also demanded that the government should delink GST charged on restaurants in house to hotels from room rates.
“Since November 15, 2017, restaurants in hotels having room tariff less than Rs 7500 are to collect a five per cent GST on restaurant Sales without Input benefit,” the TTAG has said.
The restaurants of Hotels having room tariffs greater than 7500 are to levy 18 per cent GST with input benefits. “This leads to ambiguity and confusion. GST charged on restaurant services should be delinked from room rates and a flat five per cent GST should be levied,” the TTAG has added.
The tourism body has demanded to treat foreign exchange earnings in tourism services as exports or deemed exports with zero GST.
