Goa Tourism: GCCI Requests Uniform 12% GST on All Hotel Types in Goa

The Goa Chamber of Commerce and Industry (GCCI) has made a formal appeal to the State government seeking simplification in the Goods and Services Tax (GST) structure. Through a detailed memorandum submitted to Chief Minister Pramod Sawant, GCCI outlined a series of recommendations aimed at reducing tax complexity, encouraging transparency, and supporting business growth in Goa. 

The proposals primarily focus on rationalising tax slabs and enabling a more practical and competitive GST framework for the hospitality and tourism sectors.

12% Uniform GST Rate for All Hotels in Goa 

One of the central proposals put forth by GCCI is the introduction of a uniform 12% GST rate on all hotel accommodations, regardless of tariff category. This move is expected to streamline the tax process for hotel businesses, which currently deal with varying tax rates based on room prices. A single slab structure would not only simplify compliance for hoteliers but also help eliminate the cascading effect of multiple taxes on end consumers.

Flexibility for Standalone Restaurants

GCCI also recommended a major shift in the taxation of standalone restaurants. At present, such establishments are taxed at 5% without input tax credit, limiting their ability to offset input costs. The new proposal suggests allowing these restaurants to opt for a 12% GST rate with input tax credit. This approach would correct the inverted duty structure and make the tax system more balanced and transparent, particularly benefiting small and mid-sized businesses.

Recommendation to Allow GST Return Revisions

In its memorandum, GCCI called for an important reform in the area of return filing. It proposed that businesses be allowed to revise their GST returns to correct genuine errors. Currently, the inability to amend previously filed returns has led to procedural complications and unnecessary disputes. The suggested change would improve accuracy in tax reporting and reduce friction between taxpayers and authorities.

Phased Implementation and Industry Collaboration

Acknowledging the progress and stability seen under the current GST framework, GCCI emphasised the importance of a gradual and well-planned rollout of the proposed reforms. The chamber expressed its willingness to collaborate with government bodies to fine-tune the suggested measures. By involving stakeholders from the outset, the initiative aims to ensure smooth integration and minimal disruption to ongoing business operations.

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Enhancing Goa’s Tourism Competitiveness

Beyond compliance, GCCI believes that these reforms can significantly boost Goa’s attractiveness as a global tourist destination. By simplifying GST rates and easing the tax burden on service providers, the State stands to gain greater competitiveness in international tourism markets. This aligns with Goa’s broader economic vision of leveraging its unique cultural and natural appeal to attract a steady flow of visitors and investments.

Conclusion

The GCCI’s proposals to simplify GST in Goa reflect a strategic push towards creating a more efficient and business-friendly tax regime. With clear recommendations such as uniform rates for hotel rooms, input credit for restaurants, return revision flexibility, and phased rollout, the memorandum outlines a holistic vision for fostering growth in one of India’s most tourism-driven states. As discussions evolve, the collaboration between industry and government will play a key role in shaping the future of tax administration in Goa.

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