DELHI: The Federation of Associations of Indian Tourism and Hospitality (FAITH) made a specific request for 6% Goods and Services Tax (GST) rate for the tourism sector in their latest interaction with the GST commissionerate. The federation has been meeting with all policy makers at central & state governments for the last four months for the same.
This is the lowest slab for GST rates. Else, the services sector is being considered for 18% and 12% rates. FAITH said that a number of tourism sub-sectors in India are already on abated rates currently and given. Also, the global tourism industry average indirect tax rates are between 6-9%, India too should tax the travel sector at lowest tax slab of 6%.
Additionally, FAITH also recommended GST commissioner on presumptive rates. It said that there is likelihood that this will be considered positively. Export service status under section 2(44) c too was considered. FAITH said that it was that the place of provision of supply of service may be re-looked at in the second draft of GST law.