Mumbai: GST relief can make cruise ship tickets 50% cheaper - GST NEWS

Times of India

Mumbai: GST relief can make cruise ship tickets 50% cheaper  - GST NEWS MUMBAI: The Indian National Cruise Lines Association (INCLA) wants the government to give tax waivers to halve the price of tickets for passenger cruises. The body wants 18% GST on cruise tickets to be brought down to 5%, on the lines of economy class airfare. It also wants on-board supply of goods and services be taxed at 5%. The demand has come just before the first domestic cruise ship is flagged off from Mumbai to Goa. The ship has secured 60% bookings for the next two months. ALSO LIKE OUR FACEBOOK PAGE: https://www.facebook.com/latestgstnews/ Twenty-six cruise liners, under the banner of INCLA, want GST exemption on the procurement of ships. They have also sought zero taxation on fuel supplied from Indian bunkers. Several cruise liners are planning to launch ships in Indian waters. The government's move to open the coasts for cruising has already significantly reduced costs for Indian passengers, who till now were boarding cruises at Singapore. They would incur air and hotel costs to go and stay there. A report by the global consultant Bermello Ajamil & Partners says that there is an incredible multifold potential for all stakeholders in cruise tourism in India. As per the report, the opening of the cruise market in India would generate employment by creating 2.5 lakh jobs, increase cruise tourists from 1.8 lakh to 40 lakh and cruise ships visiting India from 158 to 955 in five years. Also, the report says, related revenue has the potential to increase from Rs 712 crore to Rs 35,500 crore by 2022. "As per tax laws prevailing in countries such as Norway, Australia, Malaysia and Singapore, the supply of goods on-board for consumption or sale are treated as zero-rated supply as the same are used or enjoyed internationally. In view of the above international tax practices, suitable amendments should be made under Indian tax laws to provide the Indian cruise industry a much-needed boost and to provide for zero rating of supply of bunker fuel to cruise ships, irrespective of its flag," said a white paper by INCLA, presented to the government.

                         source:- Times of India
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