The Indian Association of Tour Operators (IATO) has written to the Finance Minister urging for lowering of Goods and Service Tax (GST) on various tourism related services at the upcoming GST council meeting.
“The inbound tourism has been the worst hit and if we were to get these financial relief it will help us give us some strength to bounce back. Sincerely hope that our requests will be given serious consideration by the GST council,” said Rajiv Mehra, President, IATO.
He further requested that the Ministry of Home Affairs can start planning on opening an E-Tourist Visa in phases as vaccination in many source markets such as USA, UK and other European Markets are almost complete. So that inbound tourism business can start as it will not only revive economic activities but also bring back jobs lost during the last 14 months.
“The GST on Tourism services in India is more than double as compared to the neighbouring countries. In order to compete, GST rates on tour operators need to be rationalised. Specifically, IATO requests the council to consider charging GST on tour operators on 10 per cent of the service charged or 1.8 per cent of gross billing of the tour operator as compared to present 5 per cent,” said the statement.
The tour association further requested that GST/IGST may be fully exempted on the services provided outside India in neighbouring countries even if the package includes India tour. As a result of tax exemption, bookings will come to Indian Tour operators instead of such bookings going to tour operators based in neighbouring countries. This will add considerable foreign exchange for the country.