18% or 5% GST: Houseboat Industry Battles Tax Woes



Quick Summary
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-
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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.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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