18% GST: Houseboats run for cover
T'puram: The houseboat owners of Alappuzha, Kochi, and Kumarakom face an uncertain future as the state govt has yet to make a concrete decision to scrap the state GST office's move to collect 18% GST with retrospective effect from 2017.
Though a petition was submitted to the tourism ministry to cancel the move almost three months ago, the state govt is yet to offer a solution.
Boat owners have been paying GST at 5% following an assurance from the central GST office after a query was made to them during Kerala Travel Mart in 2017.
An tourism department official said the issue was with the finance department and has to be intimated to the Central GST Council. However, Centre says it has not asked for the additional tax.
The boat owners are puzzled as to why the state govt has to consult the central GST because the demand for tax was made by the state's GST office and not the central GST office.
Jobin K Akkarakalam of the Kerala Houseboat Owners Federation said: "It's a problem created by the state govt. Why blame the centre GST office? This is a small issue. Other states have river cruises and houseboats, but the Centre GST has not asked for tax at an increased rate."
Around 15 more houseboat owners received the notice in the last few weeks. It will become applicable to all soon.
Each houseboat owner has to pay Rs 1 to 7cr.
The issue has to be resolved by the end of this month; otherwise, houseboat owners may have to pay 10% of the money demanded, or the notice can be converted to a demand by the state GST office.
In the pre-GST era, houseboats were classified as tour operators. This continued when GST came into being. But the state govt now says that houseboats come under water transport and they should pay 18% GST.
There are around 1,200 houseboats in the lakes and backwaters of Alappuzha and Kottayam. They pick up tourists and drop them back in the same location after a tour and operate by planning and scheduling tours like a tour operator.
In Assam and West Bengal, river cruises and houseboats are charged 5% GST.
The MPs who are part of a Parliamentary Committee that visited Alappuzha also told the stakeholders that the issue was with the state govt.
Though a petition was submitted to the tourism ministry to cancel the move almost three months ago, the state govt is yet to offer a solution.
Boat owners have been paying GST at 5% following an assurance from the central GST office after a query was made to them during Kerala Travel Mart in 2017.
An tourism department official said the issue was with the finance department and has to be intimated to the Central GST Council. However, Centre says it has not asked for the additional tax.
Jobin K Akkarakalam of the Kerala Houseboat Owners Federation said: "It's a problem created by the state govt. Why blame the centre GST office? This is a small issue. Other states have river cruises and houseboats, but the Centre GST has not asked for tax at an increased rate."
Each houseboat owner has to pay Rs 1 to 7cr.
The issue has to be resolved by the end of this month; otherwise, houseboat owners may have to pay 10% of the money demanded, or the notice can be converted to a demand by the state GST office.
In the pre-GST era, houseboats were classified as tour operators. This continued when GST came into being. But the state govt now says that houseboats come under water transport and they should pay 18% GST.
There are around 1,200 houseboats in the lakes and backwaters of Alappuzha and Kottayam. They pick up tourists and drop them back in the same location after a tour and operate by planning and scheduling tours like a tour operator.
In Assam and West Bengal, river cruises and houseboats are charged 5% GST.
The MPs who are part of a Parliamentary Committee that visited Alappuzha also told the stakeholders that the issue was with the state govt.