GST for MICE: Yay or Nay?
India is coming to terms with the new tax regime, the Goods and Services Tax (GST). Few industry experts elucidate on whether GST has been a boon or a bane for the MICE segment
The hospatality and toursim sector in India contributes to the growth of the national economy in a major way. The recent announcement of the GST regime has created some ripples around the segment. Lack of input tax credit (ITC) under the Goods and Services Tax has impacted the Meetings, Incentives, Conferences and Exhibitions (MICE) segment with cancellations and postponement of events, according to the Hotel and Restaurant Association of India. One of the anomalies that emerged post GST rollout was that MICE activities and other events held in hotels outside of the home state were not eligible for input tax credit (ITC). Some experts unravel more on this
While some suggest a more clarity on the Goods and Service tax policy, some say it could affect the MICE industry in terms of Input Tax Credit among some of the issues that needs to be pondered upon. The Goods and Services Tax (GST) was implemented on July 1, 2017 and was aimed to bring in the ‘one nation one tax' system
in India. Being hit while unprepared was what the industry witnessed. The MICE industry has a lot of components in its umbrella like venue, travel, advertising, accommodation, and catering, among more. The tax regime would impact these segments or not is what the the industry insiders are comprehending upon. The tax regime has made the country appear a not very viable MICE destination globally for events as MICE does not only constitute meetings, conferences, events but also the leisure time that MICE groups look forward to and avail during the MICE tours. The tax regime shall effect the entertainment tax in some states and so the MICE agents shall witness some hiccups. The government be it the centre or states together should ensure to allow time for agents and hotels to adapt to the new system to make India as a preferred destination for MICE events worldwide among stiff competion of other destinations like Dubai, Southeast Asia, etc.
The tax regime has made the country appear a not very viable MICE destination globally