‘A lower and uniform GST slab will not only encourage domestic travel but also attract more international tourists’

Dharmesh Advani, National General Secretary, ENTERPRISING TRAVEL AGENTS ASSOCIATION, says that the tourism industry is one of the largest contributors to employment and foreign exchange in India, but continues to be burdened with a high GST rate structure. “Our association’s key ask is for the government to rationalize GST on tourism-related services — particularly on hotels, airfares, and packaged tours — to make Indian tourism more competitive with other global destinations. A lower and uniform GST slab will not only encourage domestic travel but also attract more international tourists by making India a value-driven destination. The government should also consider input tax credit benefits across the tourism supply chain, which are currently restricted, leading to cost escalations. To help tourism flourish, we urge policymakers to adopt a long-term, sector-specific view of GST that acknowledges tourism as a driver of inclusive growth. Reducing GST and simplifying compliance will stimulate higher volumes of travel, resulting in greater tax collections overall and significant job creation.”