Travel News and Updates: recommendation

In 25th GST council meeting FAITH had made 9 major demands to the GST council in meeting with the ministry of finance. On 17th January 2018.

FAITH  statement says-
“To push through the remaining recommendations, FAITH and its member associations will keep on engaging with the central and state policy-makers to hone in the realization that a strategic GST regime is very critical for competitiveness of our tourism & hospitality industry and consequently for higher employment in India,”

FAITH pay gratitude to honorable Finance Minister Arun Jaitley and pay special attention to the two main bottleneck points in the GST council meeting -

1. Tour operator to tour operator GST to be made available as it was earlier in the service tax regime.This will prevent the tax on tax in the tourism distribution value chain.

2. Administrations like elephant rides, camel safaris, event congregations and such others are at 0% rating. Elephant rides, camel rides, Amusement parks, joy rides have been brought down to 18% from 28%.  

Complete Highlights of the Meeting are-

• IGST be made accessible for ardent properties for tourism convenience such as for hotels, cruises, campgrounds and for eateries (restaurant).
• Trade profit in tourism benefits as fares and give a zero rating or an extraordinary rating of 5%.
•  Exchange esteem and not Declared Tariff ought to be the reason for rate arrangement of lodgings.
•  Hotels above 7500 charge 28% GST,  will be rationalized.
•  An option to discharge under presumptive model may be extended to travel agents, tour operators who are booking hotel accommodation/ any other tourism products/ tour packages (1.8% for B2C & 0.9% for B2B)
•  Tour operator to tour operator GST to be made available as it was earlier in the service tax regime.
•  Travel and Tours administrations outbound from India ought not draw in GST as they are in the nontaxable domain.
•  Administrations like elephant rides, camel safaris, event congregations and such others be at 0% rating.
•  Special arrangement and administrations account code of experience for visit administrators.