19th January 2018
To All Members
Subject: Changes In GST on Recommendation of IATO
This is further to our circular dated 18th January, 2018 with regard to GST Council Meeting held yesterday.
I am pleased to inform you that two of our recommendations have been accepted by the GST Council and these are as under:
1) To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
2) To clarify that Elephant / Camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers.
The above mentioned changes would effect from 25 January 2018.
We shall continue to follow up with both the Ministry of Finance and the Ministry of Tourism for our other recommendations for positive consideration.
‘Govt. Notification’ would be circulated to all members as soon as a copy of same is received from the Ministry of Finance, Government of India.
With best regards,