Uniform 12% GST on All Hotel Types in Goa, Urges GCCI
Uniform 12% GST on All Hotel Types in Goa, Urges GCCI
The Goa Chamber of Commerce and Industry (GCCI) advocates for GST reforms in Goa, proposing a uniform 12% tax on hotel accommodations and optional input tax credit for restaurants, aiming to simplify compliance and strengthen the state’s tourism competitiveness.
GCCI has submitted a formal memorandum to Chief Minister Pramod Sawant, advocating for major reforms in the Goods and Services Tax (GST) structure to enhance business efficiency and tourism competitiveness in the state.
The appeal outlines a series of targeted recommendations designed to streamline tax compliance, promote transparency, and spur economic growth, especially within Goa’s vital hospitality and tourism sectors.
Call for Uniform GST Rate in Hospitality
A key demand from the GCCI is the introduction of a single, uniform GST rate of 12% for all categories of hotel accommodations, irrespective of room tariffs. The chamber argues that this move would greatly simplify tax compliance for hoteliers, who currently navigate a complex multi-slab tax regime based on room rates. A standard rate, it believes, would not only reduce administrative burden but also curb the cascading impact of multiple tax rates on consumers.
Input Credit Flexibility for Standalone Restaurants
Another major reform proposed is to allow standalone restaurants the option to pay GST at 12% with input tax credit benefits. Presently, such establishments are taxed at a flat 5% without the ability to claim credits on input costs, a situation that GCCI says leads to an inverted duty structure. Granting flexibility to opt for a higher rate with credit eligibility would provide relief to smaller eateries and mid-sized businesses by making the system more equitable and cost-efficient.
Proposal to Permit Return Revisions
In a move aimed at improving compliance and reducing disputes, GCCI has urged the state to advocate for amendments to allow revisions of GST returns. Under the current system, once a return is filed, no corrections can be made, even for genuine errors. Allowing revisions would help ensure accurate tax reporting and prevent procedural penalties or legal complications, the chamber noted.
Phased Rollout and Collaborative Reform
Recognizing the advancements already achieved under the GST system, GCCI recommended a phased and consultative approach to implementing any new measures. The chamber expressed readiness to work closely with government agencies and other stakeholders to ensure that reforms are smoothly integrated with minimal disruption to ongoing business operations.
Strengthening Goa's Tourism Edge
Beyond regulatory improvements, GCCI believes that these GST reforms could play a pivotal role in enhancing Goa’s global appeal as a tourist destination. Simplifying the tax regime and easing financial pressure on service providers would help Goa remain competitive in the international tourism landscape, attracting both visitors and investments.
With these recommendations, GCCI has positioned itself as a proactive partner in shaping a more business-friendly tax environment, aligned with Goa’s long-term vision for economic and tourism-driven growth.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
