the goan I network
PANAJI
Minister of Panchayat, Mauvin Godinho has assured tourism stakeholders that he will fight to ensure that Goods and Services Tax (GST) on hotel rooms with a tariff of Rs 7,500 and above per night be reduced from the current rate of 28% to 18%.
Godinho represents the state government in the GST Council of the central government and has already represented Goa in several crucial GST Council meetings.
Addressing a gathering of businessmen and tax officials, Godinho said, “It pains me as a minister from Goa that (hotel) rooms (with tariff) above Rs 7,500 per night are taxed at 28%. It’s the grievance of not only Goa but of the entire hotel industry. Yes, this should have been flat 18%. I have been fighting for it.”
He continued, “I will keep fighting and I will make it happen. It is genuine and it is required because today Goa is the most sought after destination and we compete with some of the best destinations in the world and we should be competitive in every sense.”
Godinho also said that Union Finance Minister, Arun Jaitely had earlier assured him that relief would be
given on this issue, but later Jaitley couldn’t attend GST Council meetings on account of ill-health.
These comments were made when Godinho was speaking as the chief guest of an event organised to celebrate the first anniversary of GST roll-out.
Other dignitaries present on the occasion were Commissioner of State GST, Dipak Bandekar, Commissioner of Central GST, K. Anpazhakan, President of Goa Chamber of Commerce and Industry (GCCI), Sandip Bhandare and President of Travel and Tourism Association of Goa (TTAG), Savio Messias.
Both Bhandare and Messias highlighted that luxury hotels in Goa are being taxed at much higher rate than other tourism destinations.
Messias said, “The hospitality industry has been affected adversely due to GST on account of the concept of declared tariff. No hotel has declared tariff in a fast dynamic world. Most hotels work on dynamic pricing model determined by demand and supply with tariff rates fluctuating on a daily basis. It would be an immense relief to the hotel industry if the tax slab is determined by the charged rate and not declared rate.”
