In the process of reviving from the deep slump during the Covid pandemic, Goa's hotel industry on Wednesday demanded exemption from 12 per cent GST to small hotels charging less than Rs 1,000 for a room, claiming the imposition on small hospitality units would adversely impact business.
The Travel and Tourism Association of Goa, the state's oldest body of tourism industry stakeholders have also submitted their GST roll-back demand to Industries Minister Mauvin Godinho, who is also the state government's representative on the Goods and Services Tax council.
"From July 18 this year, a GST rate of 12 per cent has been levied on hotels having a tariff below Rs. 1000 per night. Prior to this there was no GST applicable on this slab," the memorandum submitted to the Goa Minister.
The memorandum also states that around 60 per cent of the state's small registered hotels 3,848 would be impacted by the Council's decision to their detriment.
"Around 2170 out of a total of 3,848 hotels in Goa, 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," the memorandum states.
"The Travel and Tourism Association of Goa has requested Mauvin Godinho, Minister of Industries and Transport and Goa’s Representative on the GST council to take up this matter and propose the below-mentioned solutions," the TTAG said in a statement.
Another demand made in the association's memorandum includes delinking of GST on restaurants housed in hotels from room tariffs.
"Hotels should have the option of choosing a GST rate of 5 per cent on restaurant services," the memorandum also said.
The tourism industry in the state is in the process of picking up post the Covid-19 slump.
Goa is regarded as one of the top best beach and nightlife tourism destinations in the country. Before the pandemic nearly eight million tourists visited the state every year.