Govt preparing the trade for GST

While this ruling will affect tour operators’ business, there is still confusion over if the increase on service tax would be 6 per cent or 9 per cent. P.P. Khanna, President, ADTOI, says, “We have called a meeting on the same. I feel that with this announcement, the government is preparing us for the GST. There is already a big load on tour operators, as we are competing with OTAs. We know that tour operators come to be a bit costlier because they are already paying service tax, which is not the case with OTAs. Now, with the new tax regime, it would be another blow to our businesses. We only survive on relationships we build up with our customers and their loyalty. However, with more price hikes, we would sure lose out on our business. On one hand, the government wants to increase the employment and revenue in tourism, on the other hand, it is heavily taxing the tour operators.”