NT Reporter
Panaji
With a two-day GST Council meeting ongoing in Delhi, stakeholders in Goa’s hospitality trade said they are hoping for a flat 5 per cent Goods and Services Tax (GST) rate on tourism services.
Currently, GST on hotel rooms is 12 per cent for tariffs up to Rs 7,500 per night, and 18 per cent for tariffs above Rs 7,500. Restaurants face either a 5 per cent tax rate with no option to claim input tax credit (ITC), or 18 per cent with ITC claims.
Travel and Tourism Association of Goa (TTAG) president Jack Sukhija on Wednesday said the industry is wishing for a lower, consolidated rate of 5 per cent. “We hope that in the long run the government will consider services rendered to foreign tourists as export services and levy zero GST. It will help in reviving the international market which pan-India is significantly below what it was in 2019,” said Sukhija.
The association has been regularly raising the issue with concerned government departments, he said.
According to the state government, Goa recorded 54.55 lakh tourist arrivals in the first six months of this year, of which 51.84 lakh were domestic travellers and 2.71 lakh international visitors. The surge was attributed to aggressive marketing in international trade fairs and improved flight connectivity.
However, local hoteliers said that despite growth in arrivals, the average
revenue per room is lower this year compared to 2024, due to reduced tariffs. Small restaurant owners added that the GST slabs are complicated and difficult to comply with.
The GST Council is currently deliberating on simplifying tax rates by removing the 12 per cent slab.
