GST Insight – Kamlesh Barot, past president of Federation of Hotel and Restaurant Associations of India (FHRAI) and director of Vie Hospitality

Features, GST and its Implications

“The non-refund or non-receipt of input credit tax (ITC) for businesses holding MICE in states other than the ones they operate in is the biggest drawback of GST for hospitality. ITC is available if the entity arranging the MICE has their GST registered in the state where it is held and also unfortunately ITC on Integrated Goods & Services Tax (IGST) is not applicable for the hotel industry. Not receiving a set-off for an expense will be discouraging for any business to conduct MICE outside of their State. This will translate to such enterprises either holding MICE in their respective states or they go to a country where not only the taxes are lower but also mostly get the tax refund by that country on exit. We are engaging with the Tourism Ministry in this regard and hopefully the clause will be altered to encompass MICE for ITC.”

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