FAITH seeks 6% GST rating for tourism & hospitality

In their latest set of interactions with GST commissionerate, FAITH has made a very specific request for 6 per cent. GST rating, at the lowest slab for the tourism & hospitality industry. The services sector is being considered for 18% and 12%, but considering that a lot of tourism sub-sectors in India are on abated rates currently & that worldwide tourism industry average indirect rates are between 6-9% Faith believes it is important to communicate the requirement for the lowest slab 6% for the industry. Additionally, FAITH has sounded the GST commissioner on the issue wrt presumptive rates & there is a likelihood that that will be considered positively. They have also sounded on export service status under section 2(44)c & have 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 4 months Faith has been running a persistent campaign with all policy makers at central & state governments to position Indian tourism on the lowest GST rate which will double the PAN India employment & GDP output resulting from tourism.