GST may make international tra vel expen - elplaw.in · Iqbal Mulla, chairman, Gl obal Tourism Council said th e increase in th e cost of travellin productive for the industr y as

9/4/2018 GST may make international travel expensive

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GST may make international travel expen

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Updated: Jul 12, 2017, 07:05 AM IST

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Despite a lower tax rate under goods and services tax (GST), outbound international trout more than in the previous regime, say tour operators.

Also, a levy of 12% on currency is also expected to add to customers' burden.

"The tax rate under GST (5%) is lower than what it was for service tax (9%). But input coperators under GST; this will cause us to work at a higher base cost and make travel service tax, we were allowed input tax credit so the �nal impact on the costing was neco-founder of Mumbai-based Nirvana Excursions.

Iqbal Mulla, chairman, Global Tourism Council said the increase in the cost of travellinproductive for the industry as most of the tour operators in India now deal with intern

"Domestic travelling no doubt has bene�ted due to GST, but that is not the case with intourism. The government should rethink their decision and make things easier for thtravellers," said Mulla.

Industry insiders claim the problem has been compounded with reports that purchasbanks could attract IGST of 12%, making the notes costlier for the outbound travellers.clari�cation from the government on the issue as a noti�cation under GST has exempRBI but not by banks.

Nishant Shah, partner, economic laws practice, said, "The levy of 5% GST on tour operaconsidering that most of these services would be in the B2C stream and therefore a reto 5% GST will facilitate the consumers of these services. However, the restriction on aon procurements will increase the overall tax costs on account of GST in the hands ofinput services will be charged GST @ 18% as compared to the erstwhile service tax rat

The government could have facilitated by allowing credits in the hand of tour operatospeci�c input services which are directly related to the outward supply made by such

With regard to GST noti�cation on the import of foreign currencies, Shah said there isfrom the government.

According to India Brand Equity Foundation, a Trust set up by the Ministry of Commeemerged as the world's fastest-growing outbound market The number of Indians travefrom around 15 million today to 50 million by 2020.


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