Houseboat owners in Kerala are in a difficult situation due to conflicting GST rates. While they have been paying 5% GST based on assurances, the GST office is now demanding 18% retrospectively from 2017. This has led to notices for substantial amounts, causing significant financial worry. The core of the issue lies in how houseboats are classified: the State GST office views them as 'water transport' (18%), while the Central GST office considers them 'tour operators' (5%).
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-
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Community
-
Daily E-Newsletter
-
Unlimited News Access
-
Profile Visitors
-
Link Social Profiles
-
Featured Job Posts
-
Pro Badge
-
Expert GST Guidance
-
Unlimited Forum Replies
-
Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benefits
Already a PRO member?
Login here
for an ad-free experience.
FAQ :
Houseboat owners are facing demands for 18% GST retrospectively from 2017, despite having paid 5% based on previous assurances.
Retrospective GST demand notices have been issued, with individual owners facing demands ranging from Rs. 1 crore to Rs. 7 crore.
The State GST office classifies houseboats as 'water transport' (18% GST), while the Central GST office considers them 'tour operators' (5% GST).
If unresolved by the end of the month, owners may have to pay 10% of the demanded amount or face it being converted into an official demand.
No, states like Assam and West Bengal levy only 5% GST on similar houseboat services.
Stakeholders believe the issue stems from Kerala's GST office, not the central government.