GST: Tour Operator Services provided to a foreign tourist for the tour performed in India is proportionately taxable

 

GST Rate Change Notification issued on 13-07-2022 to give effect to recommendations made at the 47th GST Council Meeting.

As a result of this, there will be Change in the GST Rate effective from 18-07-2022. Few Goods/Services which were tax free have been made taxable now.

Major changes in Exemptions applicable from 18-07-2022 shall be as under:

(1) Renting of residential dwelling to a registered person is taxable.

(2) Hotels, Inns, Guest house, club or campsite by whatever name called – charging even upto ₹1000/- per room per day are now taxable at 12%

(3) No exemptions of RCM on GTA where freight is ₹1500 or ₹750. Now Reverse Charge on GTA services will be applicable from ₹1

(4) Services by RBI, IRDA, SEBI, FSSAI, GSTN and cord blood banks are now taxable.

(5) Services by hospital charging room charges more than Rs 5000/- per day are taxable. But if charges are charged for ICU or CCU or ICCU then no GST is applicable.

(6) Treatment or disposal of common bio-medical waste to clinical establishments are taxable

(7) Now Warehousing Services of Nuts & Vegetables, Spices, Copra, Sugarcane, Jaggery, Raw Vegetables Fibres such as Cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves & coffee withdrawn

(8) Tour Operator Services provided to a foreign tourist for the tour performed in India is proportionately taxed based on the number of days spent in India & Outside India.

(9) Few Exemptions withdrawn for Fumigation Services.

The copy of the notification is as under:

GST Rate Change Notification (2)