Team Herald

PANJIM: Ahead of the upcoming Goods & Services Tax (GST) Council meeting in Goa, the State government has supported the tourism stakeholders’ demand to lower GST rates on tourism and hospitality industry. 

Chief Minister Pramod Sawant, who was approached by the Travel and Tourism Association of Goa (TTAG) members with its demands on Friday, has assured to place the issue before the GST Council headed by Union Finance Minister Nirmala Sitharaman.  

“After mining, we are totally dependent on Tourism. The charters are decreasing and rate of taxation is very high. It should be lowered to 12 per cent…. or I don’t know whether 18 per cent…. I cannot speak for GST Council but I will definitely fight for lower (GST) rate to make us competitive with the rest of the world and tourist destinations,” Minister Mauvin Godinho told reporters after the meeting of TTAG with CM at Secretariat on Friday. 

TTAG President Savio Messias, past President Francisco Braganca and other hoteliers submitted a joint representation to the CM and Godinho demanding reducing GST from 28 per cent to 12 per cent. 

CM Sawant told the reporters that he will personally discuss the matter with the Union Finance Minister during the meeting of the ministers on September 20. 

Godinho added that many meaningful discussions are expected to be taking place in the meeting against the backdrop of many sectors clamouring for a rate reduction. He cited the case of the auto industry, which has also been on a decline and has been pressing the government for lowering the duty. The biscuit manufacturing companies have also joined the community seeking reduction of the GST. 

In its representation to the government, the TTAG has pointed out how GST rates for hospitality in India are very high as compared to their Asian competitors. As a result of which, they added, the States are losing a significant number of foreign tourists and that this will also impact the domestic traffic in this segment.

“It would help the Hotel and Tourism Industry be competitive if GST for room tariff be kept at 12 per cent. This will be in keeping with the principles of equivalence and national competitiveness,” they added in their representation. 

They have also called for de-linking GST charged on restaurants in-house to hotels from room rates.

Further, they have demanded that IGST be made available for immovable properties for Tourism accommodation such as for Hotels, cruises, campsites. “With no GST credits available, hotels in States such as North-east, Jammu & Kashmir, Rajasthan, Goa, Kerala, Orissa, West Bengal etc are witnessing cancellations from corporates who are preferring destinations abroad. This is defeating the purpose of GST to achieve seamless flow of credit & is severely harming the tourism industry,” said TTAG while citing several other recommendations.