The Goods and Services Tax has had a "negative" effect on tourism in Jammu and Kashmir, a parliamentary panel has noted, adding the Centre should reconsider the indirect tax regime on tourism-related activities in the northern state.
The Committee on Development of Tourism in Jammu and Kashmir, in its report, said according to the stakeholders, sourcing of products and materials is an issue in the state.
It said unlike other states, residents of Jammu and Kashmir and its business owners spend huge amounts of money on procuring essentials, most of which have to be flown in, which increases their capital expenditure.
"The sensitive nature of Jammu and Kashmir must be taken into consideration during the development of tourism in the region. The implementation of GST on tourism in the region will have manifold effects, mostly negative on its economy," the committee said.
It said small business owners of small-scale hotels, bed and breakfasts and home stays cannot list their properties on various travel intermediary websites as there is a levy of
"In this regard, the Committee recommends that the implementation of Goods and Services Tax (GST) on