The Federation of Associations in Indian Tourism and Hospitality has sought amendments to the draft Goods and Services Tax law that include making an exception for tourism and hospitality businesses, and classifying them under 6-8 per cent tax slab as some other countries do.
The federation, the apex body of the sector which represents hotels, restaurants, resorts, tour operators and travel agents, has been in talks with the finance ministry and governments of various states such as Rajasthan, Maharashtra and Karnataka on the issue. “We are the sounding board of the government for the sector and we feel the single biggest game changer in tourism will be GST. It is therefore important for us as a federation to make the government realise how important it is and at what slab we are put in. We are therefore doing a lot of work around GST,” said the federation’s chairman Nakul Anand. The federation also recommends a 0 per cent rating on foreign exchange earnings once the exception is made.