PANJIM: Aggrieved by the inclusion of GST on room tariffs let out at lower rates, the Travel and Tourism Association of Goa (TTAG) has urged the State government to lift GST on accommodation charged below Rs 1,000 and de-link GST on restaurants in hotels.
TTAG President Nilesh Shah has appealed to
the Minister of Industries and Transport Mauvin Godinho, who is also Goa’s representative on the GST council to take up this matter and propose the two solutions to the Central government.
“Revert to exempting tariffs below Rs 1000 from having a GST levied on them. De-link GST on restaurants in hotels from room tariffs. Hotels should have the option of choosing a GST rate of 5 per cent on restaurant services without Input Tax Credit (ITC) or 18 per cent with ITC irrespective of room tariff,” Shah said suggesting the two solutions to the State government.
GST rate of 12 per cent are levied on hotels having a tariff below Rs 1,000 per night with effect from July 18, 2022. Shah said that prior to this new rule, there was no GST applicable for room tariffs below Rs 1,000 per night. More than 60 per cent, which means around 2,170 out of a total of 3,848 hotels approx registered with the Department of Tourism are small hotels with a tariff below Rs 1,000 per night.
“This will affect them adversely and increase their compliance costs. In addition to the above, GST levied on restaurants in hotels is linked to the room tariff. Restaurants in hotels with a room tariff below Rs 7,500 have a GST of 5 per cent without ITC and those with a tariff above Rs 7,500 have a GST of 18 per cent levied with ITC,” he said.
