New Delhi. After the GST, expensive tour packages can be cheap in the new year. The government can give an advantage of input credit to tour operators in the GST Council meeting in January.
The assurance given by the government as per the operators, they will get the benefits that they get before GST. If this happens, tour packages can be cheap up to 5-7%.
Tour operator will get input credit
The tour operator head, who has information on this issue, in the meeting held in GST Council in November, it was a discussion on getting input credit to tour operator and the people of the council had assured that it would pass it in the next meeting. will be given. However, it was not yet decided what percentage of input credit would be given to tour operators. They said that there was a debate on input credit rate for the last time.
Tour packages can be cheap
According to the tour operator, if the government gives input credit it can reduce the price of the tour package. The next meeting of GST Council is to be held in January. Tour operator Subhash Verma said that due to lack of input credit some tour operator had increased the price by 5 to 7 percent, but if the government gives input credit, the operator can reduce the price on the tour package.
Significance of tourism industry in India
- In India, the sector’s direct contribution to GDP is expected to grow by 7.9 percent per annum during 2016–26.
- Foreign exchange earnings from tourism accounted for USD21.1 billion in 2015, witnessing
growth at a CAGR of 10.5 per cent during 2006–15.
- Contribution of visitor exports to total exports is estimated to increase at 7.2 percent per
annum during 2016–2026.
- Travel & tourism’s contribution to capital investment is projected to grow at 6.3 per cent per
annum during 2016–26.