KTM Society Meets Minister Suresh Gopi; Submits Memorandum to Resolve GST Issues

KOCHI:
Kerala Travel Mart Society today made a strong pleas to the Centre to resolve certain GST-related issues affecting the state’s tourism sector, highlighting an “erroneous” linking of taxation of food services in restaurants to room rates charged for accommodation.

These two are unrelated and they must be separated, according to a high-level delegation of KTM Society which met Union Minister of State for Tourism and Culture Suresh Gopi, who assured the members of considering this demand, among others.

The minister told the functionaries, led by KTM Society President Jose Pradeep, that his ministry will accord priority to infrastructure development across the tourist destinations in the state.

Gopi also said he would talk to the Railway Minister about a new Vande Bharat train for Kerala. The minister has also assured that a detailed meeting of representatives of all Travel & Tourism associations will be convened very soon.

The delegates also informed the Union Minister that currently, foreign tourists sign the hotel’s registration card, and the hotel inputs the passport and visa details into the Ministry of Home Affairs C-Form online portal. The additional requirement by the Kochi FRRO for guests to fill the B form creates significant challenges such as tedious data entry, hampered arrival experiences, language barriers, and procedural inconsistencies, necessitating a resolution with the State Government, they said.

KTM Society, in three memoranda to the minister, sought to link GST on restaurants and banquets. The GST can be at 5 per cent for those availing no input, while it can be 12 per cent for those claiming input credit, thus delinking these from the rates of hotel accommodation.

Pradeep submitted the memorandum along with KTM Society Vice-President Harikumar C., Treasurer Jibran Asif, Joint Secretary Jobin Joseph, Ayurveda Promotion Society President Sajeev Kurup, Association of Approved and Classified Hotels of Kerala (AACHK) President K J Joseph and AACHK Administrative Council Member Dinesh Rai (Crowne Plaza General Manager), Mallika Dinesh, tourism entrepreneur besides other tourism entrepreneurs.

KTM Society cited an “anomaly” in charging 5% GST (without input tax credit or ITC) for restaurants in hotel premises having daily room tariff of less than Rs 7,500 per unit and 18% for those with a tariff of above Rs 7,500. The memorandum sought a clarification on applying GST rates on restaurant in case of a hotel on merely the basis of the actual value of services received and rendered.

Further, as KTM-2024 is to be held this end-September to showcase Kerala’s strength in tourism before a global audience, the Union Ministry of Tourism must participate in the four-day event with an estimated cost of Rs 15.22 crore and grant a special financial assistance of Rs one crore, the memorandum said.

As buyer registrations have crossed 2,500, “we are expecting a minimum of 500 international and 1,500 domestic buyers” to attend the KTM-2024, where organisers are “inviting all the south Indian states as well,” it pointed out.

The memorandum appealed to the government to restart the international marketing campaign for Incredible India in key markets, put the names and contact details of tourism officers in 20 Indian embassies in the Ministry of Tourism website.

Specifically for Kerala, it called upon the government to promote the state as a MICE destination, increase flight connectivity to Kannur international port, promote temple festivals beyond Thrissur Pooram, and develop new beach destinations in the state.

Further, the memorandum made a plea to the government to launch Centre-funded training programmes for hospitality and tourism sector for capacity building, a Vande Bharat sleeper train from Madurai to Kochi and day trains from Kochi to Bengaluru and Chennai, and set up tourism/hospitality incubation centre at IHM Kovalam or any other place in Thiruvananthapuram to encourage tourism startups.

The Ayurveda Promotion Society, in a separate memorandum, wanted the government to establish a Medical Value Travel Board comprising representatives of the Ayush Ministry and the private sector.

The other suggestions from Shri Kurup included according importance to the marketing of medical value travel and tourism in all major international exhibitions under Incredible India brand and boosting marketing at major international B2B and B2C events under this brand to help the private sector to attend economically.

Kurup, who is also MD of Ayurvedamana Hospital and General Secretary of Confederation of Kerala Tourism Industry, further wanted the government to conduct road shows in non-English speaking international destinations to promote tourism and medical value travel under the brand Incredible India, and financially help the tourism trade societies for their marketing proposals.