Tag Archives: Ministry of Finance

FAITH recommends 12% GST to Finance Ministry

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has suggested an upper GST rate of 12 per cent for the tourism and hospitality industry and handed its detailed recommendations to the Ministry of Finance. The industry comprises of air travel agents, business exhibition services, hotel and hospitality services, tour operators, rent a cab and vacation ownership. The representation has been made considering strategic forex, employment, economic and GST rationale and rates for tourism, travel and hospitality sector of India. An upper limit of 12 per cent has been suggested for hotels and hospitality and vacation ownership segment. For the air travel agents the recommendation was given to continue presumptive rate on all income and keep GST at 1 per cent or less. For the tour operators, FAITH requested to introduce a presumptive rates mechanism of GST at 1.2 per cent considering difficulty of getting GST input credits from unorganised sector and the burden of compliance of registration with different states. It has been requested to exempt outbound tour operators and business exhibitions selling outbound from India from GST since provision of services are out of India. In the case of rent a car, a GST rate of 5 per cent has been suggested failing which, maximum 12 per cent has been deemed acceptable. FAITH has urged for a special GST exemption on forex income for tour operators, hotels and businesses earning forex if it can be a criteria with MoF for GST. Addressing the adventure tourism industry, FAIH has requested MoF to consider special GST exemption based on J&K and a very high component of local, unorganised labour involved.

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ASI monuments to accept 500/1000 currency notes

Based on the advice of Ministry of Finance, the Director General of ASI has issued orders for accepting demonetized 500 and 1000 currency notes till the midnight of November 11, 2016, for entry tickets to centrally protected monuments. Foreign tourists can purchase foreign exchange equivalent to Rs 5000 using these specified bank notes at airport exchange counters within 72 hours after the notification provided the proof of purchasing the specified bank notes is presented, revealed Debjit Dutta, Chairman, IATO-Eastern Region.

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