Union Tourism Minister K J Alphons has sought waiver of GST on cruise tourism for a period of five years in order to give a boost to the sector which is at a nascent stage in the country.
Alphons told PTI that he has sought the waiver at a ministerial meeting in the run up to the GST Council meeting later in the month.
"The Finance Ministry has to take a call on the matter, but as the tourism minister, it was my duty to ask for the waiver in order to ensure that the sector can thrive. Nitin Gadkari, the Union shipping minister, has also supported us. In fact, they are investing a lot of money in cruise terminals and we are hopeful that our request will be granted," he said.
There has been a long-standing demand from the sector to waive the Goods and Services tax. At present, travellers have to pay 18 per cent GST on cruising and availing on-board hospitality.
The concern stems from the fact that cruise tourism, which is at the nascent stage in India, has received 9 per cent less passengers in 2017-18 as compared to 2016-17.
The minister has also sought waiving of customs duty on liquor sold on international cruise ships which enter Indian waters.
Customs duty is applicable on liquor inventories available on international cruise ships from the time they enter within a 12 km range of Indian waters.