In its latest set of interactions with GST commissionerate, Federation of Associations in Indian Tourism & Hospitality (FAITH) has made a specific request for six per cent GST rating, as the lowest slab for the tourism and hospitality industry.
The services sector is being considered for 18 per cent and 12 per cent, but considering that a lot of tourism sub-sectors in India are on abated rates currently and that worldwide tourism industry average indirect rates are between six to nine per cent, FAITH believes it is important to communicate the requirement for the lowest slab of six per cent for the industry.
Additionally, FAITH has sounded the GST commissioner on the issue with respect to presumptive rates, and there is a likelihood that it will be considered positively. It has also sounded on export service status under section 2(44)c and has been informed that the place of provision of supply of service may being relooked at in the second draft of GST law.
Over the past four months, FAITH has been running a campaign with policy makers at central and state governments to position Indian tourism on the lowest GST rate, which is expected to double the pan-India employment and GDP output resulting from tourism.
