State vows to fight for lower GST to all 5-star hotels

State vows to fight for lower GST to all 5-star hotels

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01 Jul 2019 No comment 86 hits

NT NETWWORK

Panaji

With the goods and service tax completing two years, the GST Minister for the State Mauvin Godinho on Monday said the government will continue fighting for lower tax for all five-star hotels irrespective of their room tariff.

Godinho, who is a nominated member of the central GST Council, said that thanks to the efforts of the state government the GST rate on hotels was brought down to 18 per cent from 28 per cent.

“However, the lower tax rate presently is applicable to only hotels rooms with the rate of below Rs 7,500 per night, while hotels with costlier rooms continued to attract the tax rate of 28 per cent. We have asked for GST reduction for all five-star hotels to prevent flight of tourist footfalls. Goa must not lose out to cheaper destinations,” Godinho said.  

He said that GST’s essence is on simplification due to which the revenue and compliance are improving.

Godinho was speaking at a function held to mark two years of the GST implementation in the presence of Chief Minister Pramod Sawant and four tax commissioners – K Anapazhakan (principal commissioner), Deepak Bandekar (state GST), R  Manohar (customs) and V Sunderajan (appeals).

Goa’s registered taxpayers under the unified tax stands at 33,700 as on July 1 2019 compared to 20,800 as on July 1 2017.

The number of taxpayers under the composition scheme is 5254 presently as against 3,000-odd when GST was first introduced in 2017.

Over the two year period, the average monthly tax collection has increased to Rs 213 crore, as against Rs 171 crore per month.

On the return filing front, the compliance is healthy at 93 per cent currently vis-à-vis average 84 per cent in 2018-19.

The GST function was attended by all senior government officials, chairman of Dempo Group of Companies Shrinivas Dempo, Goa Chamber of Commerce and Industry president Manoj Caculo, CII-Goa president Lalit Saraswat, chartered accountants, tax consultants and members of the
public.

Anapazhakan said that two years of GST has been a learning experience.

“GST is benefitting consumers, trade as well as government,” he said, adding that several measures were taken for smooth implementation of it in the state.

Bandekar pointed out that GST implementation has been tough but the tax resulted in increase in revenues to the
state.

Source: State vows to fight for lower GST to all 5-star hotels