The Confederation of Indian Industry (CII), in its Budget recommendations, has sought the inclusion of tourism in the concurrent list to enable the Centre and States to effectively regulate the sector as well as frame policies for growth. Currently, the Travel & Tourism sector does not figure in any of the lists.
- CII suggested tourism exports be treated on par with other exports and services and such transactions may be zero rated for GST without stopping the flow of input credits.
- The CII said that tourism services provided to foreign tourists in India on receipt of foreign exchange should be treated as ‘deemed export’ and exemption of GST should be made available.
- It also suggested the hotel industry be granted ‘infrastructure’ status.
What are Deemed Exports?
- According to the Foreign Trade Policy 2015-20, “Deemed Exports” refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange.
