KOCHI: The home stay sector in the state is also confused over GST. The sector does not figure in the declared list of GST, but the new tax regime also says that rooms that charge Rs 1000 and above per day come under GST, which has brought the confusion. The GST regime also says that businesses that have a turnover of Rs 20 lakh and above per year come under GST. “Home stays in the state do not clock this business since ours is a seasonal business from September to February. However, there could be home stays that charge up to Rs 2500 to Rs 3000 per day on rooms. Moreover, several online booking firms are also asking for our GST registration number so as to claim input credit. So we need clarity on the application of GST to our businesses,” said Mr M P Sivadathan, director, Kerala Home Stay and Tourism Society (Kerala Hats).
Mr Sivadathan said that the Central Government is not using the term home stay. “They are categorized as bed and breakfast in north India and this category does not figure under GST. It is also stipulated that up to six rooms could only be used in home stays,” he said. He said that in Kerala 0.5 percent luxury tax was so far levied on home stays and licence in this regard was obtained from the sales tax department.
“The Central Government itself has identified the home stay sector as the only one capable of meeting the shortage in hotel rooms. The nation requires 1,90,000 rooms per day which only with the active contribution of the home stay sector can be met. In the state there are over 800 registered home stays while the number of unregistered is four fold more. This is because of the various official burdens that have come on the sector. Home stays function as the centres of cultural exchange and play a vital role in the growth tourism. So the sector needs more care,” he said. In order to clarify their doubts the Kerala Hats will be conducting a workshop on GST in Kochi on July 14 in which P Nageswara Rao, Chief Commissioner, Central Excise, Customs and Service Tax has agreed to clear their doubts.
