Currently, the relevant section in the GST model law considers export service as one which is rendered overseas, thereby barring the tourism and hospitality industry from having the same tax benefits under the GST.
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Revenue Secretary Dr Hasmukh Adhia along with senior officers of the Department of Revenue and CBEC held meetings with representatives of IT and ITES and Transport Sector yesterday and with the representatives of e-commerce and Communications on Thursday.
The Federation of Associations in Indian Tourism & Hospitality (FAITH) has urged the GST (Goods & Services Tax) Commissionerate and Central Revenue Department to amend Section 2 (44) c to include tourism and hospitality industry services in the “export services”.
“Non-inclusion of electricity will lead to significant economic distortion”, Assocham said in a representation to the government.
On petroleum products, it said the industry will operate under hybrid tax regime and will be unable to claim GST credit due to temporary non-inclusion of five petro products that could increase costs. Similar would be the fate of the alcohol industry. It said that the model GST law does not have provisions dealing in supplies to SEZs, and called for an amendment to be made in the SEZ Act.
The Interactive Sessions underline the endeavour of the Government in order to understand and address the apprehensions and concerns of the various stakeholders about GST and also provide a platform for business to express their views on important aspects of GST.
Telangana state assembly will meet in September first week to ratify Goods and Services Tax (GST) Bill that was passed by the Parliament earlier this month.
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The GIFT paper also said that GST is not an answer to the fiscal problems of the state.
