Kerala's houseboat owners facing uncertainty as the GST office demands 18% GST from houseboat owners with a retrospective effect from 2017, causing uncertainty for owners in Alappuzha, Kochi, and Kumarakom.
Current Status
Houseboat owners have been paying 5% GST based on Central GST office assurance since 2017.
A petition was submitted to cancel the move, but no resolution from the state government yet.
Retrospective GST Demand
Notices have been issued to houseboat owners demanding Rs. 1-7 crore each.
If the issue is unresolved by month-end, owners may need to pay 10% of the demand or risk conversion to an official demand.
Classification
- Kerala reclassified houseboats as "water transport" instead of "tour operators" .
- State GST claims houseboats fall under "water transport" (18% GST).
- Central GST considers them "tour operators" (5% GST).
Comparison with Other States
Assam and West Bengal levy 5% GST on similar services.
Stakeholders urge the state government to act swiftly, as the issue stems from its GST office, not the Centre.
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