‘Reduction of GST from 12% to 5% fulfils long-standing demand of travel and hospitality sectors’

Rajiv Mehra, General Secretary, FAITH, shared his views on the revised GST regime and said, “This reduction of GST to 5 percent from 12 percent fulfils a long-standing demand of both travel and hospitality sectors. It will not only boost demand but is also going to a huge section in the organised sector. We estimate that it will be net positive for the government as total tax collection will be equal or even higher as demand gets boosted. Coming on the heels of busy tourism season ahead, it will tremendously improve the prospects of tourism and Hospitality sector. In addition, it will lead to spike in gig hiring. We welcome and see this is as hugely positive for our sector as well as overall economy. Another demand was that on Restaurants irrespective whether it is located in a 5 star hotel or not the GST should be 5%. Also on tour operators who sell package in which all components are GST paid without any ITC, the GST should be payable on the deemed 10% mark up – 18% on this value.”