31st October 2019

To All Members,

Dear Colleagues,

Sub: Reduction in GST Rates on Hotel Accommodation and passing on benefits to end users - Meeting held at Niti Aayog on 22nd October 2019

This is with reference to our previous email communication regarding reduction in GST rates on hotel accommodation and passing on the benefits to the end users.

In this regard a meeting was called by Mr. Amitabh Kant, CEO, Niti Aayog on 22ndOctober with regard to recent incentives announced for the tourism sector i.e. reduction in e-Visa Fee and reduction in GST Rates on hotel accommodation and passing on the benefits to the end users. 

During the meeting  a clear cut message was given by Niti Aayog, that with reduced E-Visa Fee and reduction in GST rates on hotel accommodation, Government wants that the hotels and the tour operators to pass on the benefits to the end user. IATO raised the issue of some hotels who have given AI rates prior to reduction in GST Rates, not giving the revised reduced rates as per reduced GST rates. 

Thereafter a meeting was called by Chairman FAITH on 25th October 2019 and the matter was discussed. IATO again raised the issue of hotels not giving the revised rates.

Attached please find  a copy of letter dated 30th October 2019 written by Chairman FAITH to all the member Associations, which is self-explanatory. 

Members are advised to note the following:-

  1. To approach all their hotel partners to get the revised rates according to the reduced GST Rates. 
  2. Our tour operator members to pass on the benefits of revised e-Visa Fee and reduced GST rate on hotel Accommodation. Any GST and E visa inclusive prices communicated by our members (tour operators and travel agents) to their foreign counterparts/clients/B2B partners prior to GST rate change and E visa rate change should be adjusted with a credit transmission for the reduced rates or revised quotations be sent. 
  3. If GST benefits are not passed on to the end users, it will come under the anti-profiteering laws and its penal implications in GST compliance. 
  4. In case any of the hotels refuses to give the revised reduced hotels rates, attached copy of letter from FAITH to be sent to them. If still there is no positive response, same should be brought to the notice of IATO with the following details:- 
  5. Name of the hotel, City_____________
  6. Name of the person ________________ 
  7. Contact number ___________________ 
  8. email id _________________________ 

With best regards,

Pronab Sarkar

President  

Click here to see the attachment