India needs more GST relief to make travel affordable, drive tourism growth: SOTC Travel MD
Further rationalisation in goods and services tax (GST) on domestic hotels and restaurants could help fuel tourism growth in India, even as the country's travel market continues to grow despite global uncertainties, according to SOTC Travel Managing Director and CEO Vishal Suri.
The GST Council had last year reduced GST on hotel rooms with tariffs of up to Rs 7,500 per night to 5 per cent from 12 per cent, without input tax credit, to make accommodation more affordable and support tourism.
The new rates came into effect from September 22 last year. Suri said the government's decision to reduce the tax collected at source (TCS) on overseas tour packages to a uniform 2 per cent was a positive step for the industry.
"The government has already reduced TCS on overseas tour packages to 2 per cent (uniform rate) and can further consider GST rationalisation on domestic hotels & restaurants," Suri told PTI in an interview.
He said tourism has the potential to emerge as a major contributor to India's economic growth, employment generation and regional development, and called for continued investment in tourism infrastructure, improved last-mile connectivity, destination development and policy measures that simplify regulations and encourage investment.
The MD-CEO of the travel service provider said India's domestic tourism story remains underpinned by strong structural fundamentals, supported by improving infrastructure, expanding airport networks, better road and rail connectivity, and government investments that are making travel more accessible across the country.
