Big relief for tour operators in B2B biz
The 25th GST Council meeting held in Delhi has decided to allow Input Tax Credit (ITC) of input services in the same line of business at the GST rate of 5 per cent in case of tour operator services and that of the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide such services through ECO.
The council has also decided to reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28 per cent to 18 per cent. IT has also clarified that exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels. The council has also clarified that elephant/camel joy rides are not classified as transportation services and attract GST at 18 per cent with threshold exemption to small services providers.
The Council has decided to reduce GST rates for 40 items at today’s meeting.