HBI Staff | Hyderabad 
The Goa Chamber of Commerce and Industry (GCCI) has urged Union Finance Minister Nirmala Sitharaman to reduce the Goods and Services Tax (GST) on hotel bookings to a unified rate of **12%**, aiming to make Goa’s hospitality sector more competitive against international destinations like Sri Lanka and Southeast Asia.
In a letter to the finance minister, GCCI highlighted that the current GST structure—12% on room tariffs up to ₹7,500 per night and 18% for tariffs above ₹7,500—makes Indian destinations less attractive. “A unified GST rate for hotel accommodation will make travel more affordable and boost India’s tourism sector,” GCCI stated.
The chamber also suggested offering restaurants the option to choose between **5% GST without input tax credit** or **12% GST with input tax credit**, thereby simplifying compliance for the sector.
These proposals are part of GCCI’s pre-budget recommendations for the Union Budget 2025-26. “Rationalising GST rates and slabs is essential to correct inverted duty structures, avoid cascading effects, and reduce classification disputes,” said GCCI Director General Sanjay Amonkar. He added that reviewing “blocked” credits and state taxes is critical for maintaining a seamless value chain.
Beyond GST reforms, GCCI’s wishlist emphasized broader tax simplifications, ease of doing business, and measures to stimulate economic growth, including:
– **Increasing the basic income tax exemption limit to ₹5 lakh**
– **Raising rebates under Section 87A to ₹10 lakh** under the new tax regime
– **Abolition of cesses and surcharges**, which add to the tax burden
– Extending the **15% concessional tax rate** for new manufacturing companies
– Expanding **presumptive taxation benefits to limited liability partnerships (LLPs)** and easing conversion rules for private companies to LLPs
GCCI also called for faster disposal of appeals at the Commissioner of Income Tax (Appeals) stage and suggested that any amendments to tax provisions take effect from the beginning of the financial year to provide clarity and relief to taxpayers.
These recommendations reflect GCCI’s vision to simplify tax structures, boost economic activity, and address ongoing challenges in the business environment, particularly in Goa’s key sectors such as hospitality and manufacturing.
Source: TOI
