The Goa Chamber of Commerce and Industry (GCCI) has asked Union finance minister Nirmala Sitharaman to reduce the GST on all hotel bookings to 12%. This move will benefit Goa’s hospitality sector as it competes with destinations like Sri Lanka and southeast Asian nations, where tax structure is more competitive.

GCCI wrote to the finance minister and also said that restaurants should be given the option to choose between 5% GST without input tax credit or 12% GST with input tax credit.

“Unified GST rate for hotel accommodation will make travel more affordable and boost India’s tourism sector,” GCCI stated. Currently, the GST rate on hotel rooms varies based on the room tariff which is 12% for tariffs up to Rs 7,500 per night and 18% for tariffs above Rs 7,500 per night. These inputs are part of the pre-budget recommendations ahead of the Union Budget 2025-26. “Rationalising GST rates and slabs is essential to correct inverted duty structures, avoid cascading effects, and reduce classification disputes.

Reviewing ‘blocked’ credits and state taxes is equally critical to ensure a seamless value chain,” said GCCI in its wishlist. GCCI’s recommendations emphasise tax simplification, ease of doing business, and measures to stimulate economic growth while addressing ongoing challenges, litigation, and uncertainty due to frequent amendments, said GCCI director general Sanjay Amonkar.

Source: The Times of India