New Delhi, 22 September (IANS). The new GST rates will make the country’s tourism sector more economical, increase the use of public transport and promote artisans and cultural industries. This statement was given by the government.
Earlier this month, the GST Council had reduced GST from 12 percent to 5 percent (without ITC) on hotels (less than Rs 7,500 per day). GST was reduced from 28 percent to 18 percent on buses with seating capacity of more than 10 people. Similarly, GST on art and cultural items was also reduced from 12 percent to 5 percent.
The official statement issued by the government said, “These cuts will strengthen domestic tourism ecosystem, promote cultural heritage and increase investment in respective areas.”
The statement further said, “Under Prime Minister Modi’s leadership, these reforms are in line with the approach to continuous and inclusive development, which promote employment creation and hospitality, transport and investment in traditional crafts, as well as accelerate the recovering after the epidemic in India’s tourism sector.”
Low GST rates at hotels are expected to be more economical for middle class and budget passengers.
The move is expected to promote weekend travel, pilgrimage circuits, heritage tourism and eco-endon as well as encourage investment in new medium-class hotels, homestay and guesthouse, employment generation and improvement in infrastructure.
The revised GST on buses reduces the initial cost of buses and mini buses, making them more accessible to fleet operators, schools, corporates, tour providers and state transport undertakings.
This will especially reduce ticket fares on semi-urban and rural routes and will increase people’s trend towards public transport from private vehicles, which will reduce congestion and pollution.
This will also help in expansion and modernization of fleet, which will improve public transport and improve safety standards.
In addition, the decrease in GST on art and cultural items will provide direct support to artisans, craftsmen and sculptors.
The government said that this step will also help in promoting Indian culture and craftsmanship globally by protecting the lively traditions of temple art, folk expression, small painting, printmaking and stone craftsmanship and integrate the heritage economy with modern markets.
-IANS
ABS/