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GST charged on restaurant services should be delinked from room rates: TTAG

Panaji: Ahead of the two day Goods and Services Tax Council meeting schedule to begin from Thursday at a starred hotel in Kadamba Plateau, Travel, and Tourism Association of Goa (TTAG) have urged the government to ‘delink’ Goods and Services Tax (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 5 per cent GST on restaurant sales without input benefit. Restaurants of hotels having room tariffs greater than Rs 7500 are to levy 18 per cent GST with input benefits. This leads to ambiguity and confusion. Hence GST charged on restaurant services should be delinked from room rates and a flat 5 per cent GST should be levied,” said TTAG president Savio Mesias.

He informed that representations have been made to the Chief Minister Pramod Sawant and Panchayat Minister Mauvin Godinho who will Goa during the GST council meeting.

TTAG has also reiterated its demand that 28-18 per cent GST on hotel tariffs to be rationalized to 12- 5 per cent, along with other demand that Integrated GST should be made available for immovable properties for tourism accommodation such as for Hotels, cruises, campsites.

They have also demanded that foreign exchange earnings in tourism services should be treated as exports or deemed exports with zero GST.

Stating that individual states hosting travel marts weren’t yielding positive results, TTAG have urged the Union Tourism Minister Prahlad Singh Patel to organize an international travel mart every year on a rotational basis at different tourist states in the country.

TTAG delegation recently met the Union Minister and gave the representation which included demands like reduction in GST, problems faced by charter operators in obtaining landing slots and operational issues at the Dabolim Airport and Coastal Regulation Zone relaxation from 200 meters to 100 meters.

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