24th February 2024

To All Members,

Dear Friends,

Sub: Regarding Issue pertaining to Long Delay in Receiving Bills for Accounting Purposes where 100% Advance Payments are Made by IATO Members to Approved/Classified Hotels.

We are aware of the problems, which our members are facing with the hotels regarding delay in Receiving Bills for Accounting Purposes where 100% Advance Payments are Made by IATO Members to Approved/ Classified Hotels.

Matter has been taken up with the President, FHRAI, HAI, and IHHA and we have clearly mentioned the problems which our members are facing. Extract of our letter sent to FHRAI, HAI and IHHA is given below this email for your information.

With regards,

Rajiv Mehra
President

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24th February 2024

Greetings from IATO !

May I draw your kind attention to my email sent on 15th May 2023 regarding Long Delay in Receiving Bills for Accounting Purposes where 100% Advance Payments are Made by IATO Members to Approved/ Classified Hotels.

Our members are still facing the problems and members are not receiving bills from the hotels, which is common complaint from our members. We are getting so many complaints from our members.

As mentioned earlier, the problems our tour operator members are facing with the hotels are.

1)    Wherever vouchers are issued by the Tour Operators, they usually get bills from Hoteliers & those are settled promptly.
2)    But Post Covid dynamics have changed, and hoteliers mostly demand full advance payment at booking stage. However when Clients are Checkout after having availed the stay,  Tour Operators have to Keep Chasing for GST Invoice with the hotels but they keep delaying. It is wastage of Precious time and man-power for doing such follow-up with the hotel
3)    There are cases, where hotels even do not issue GST invoice in spite of follow-up with the hotels which is against the law.  

There are objections being raised by the auditors as to how 100 % advance payment has been made without receiving the proper GST bills whereas the payment has been made including GST amount which is against the law.

If hotels continue to follow the above practice, there will not be any other option but to bring this to the knowledge of the government authorities to avoid any harassment from the taxation departments to our tour operator members.

Thus, may I request you to kindly issue a circular amongst all your members to issue GST invoice to the tour operators immediately on receipt of payment/services are rendered.

I shall be grateful for your help in the matter.

Thanks and regards,

Rajiv Mehra
President