In its communication to the Union Minister of Finance, Nirmala Sitharaman, Travel Agents Association of India (TAAI) has asked the ministry to consider GST rationalisation and TCS roll back in the forthcoming Union Budget 2022-2023.
Jyoti Mayal, President, TAAI said that the pandemic has beleaguered the travel trade for nearly two years now with no respite to the members from the government. “As the President of the largest travel trade associations in India, I would like to bring into attention of the ministry that the present GST regime is making it difficult for Indian travel agents and tour operators to compete with overseas travel agents.”
“Tour operators should be enabled a special presumptive GST rate of 1.8 per cent with full GST setoffs. Travel agents should also be allowed the option of exploring the reseller model for charging on airline tickets.”
Jay Bhatia, VP, TAAI, further said that tourist transporters should also be allowed the provision for availing GST setoffs on the interstate tourist transport taxes, taxes on parking fees and taxes on fuel which is their biggest input costs.
“GST on travel and tourism related services must be given a tax holiday for at least two years, considering the challenges that have shattered the industry,” he said.
Talking about the Tax Collected at Source (TCS), Bettaiah Lokesh, HSG, TAAI commented that the system has resulted in Indian travel companies losing business to overseas competitors. “TCS is a waste of time in ensuring compliances and has resulted in deviation of business from TAAI members to online companies and other travel agents overseas.”
Shreeram Patel, Hon. Treasurer, TAAI said, “We as an association are fully aligned to the nation’s need of enhancing tax compliance. However, there is an immediate need of rationalisation of taxes.”