Tour agencies move Supreme Court against GST on Haj

Mumbai: Aggrieved with the government’s decision to recover 5 per cent GST from Haj pilgrims going for Haj through private tour operators, the association of private tour operators has approached the Supreme Court to challenge the decision.

“Earlier government’s decision to impose service tax on Haj pilgrims going from private tour operators was challenged in the Apex Court and now the government has imposed five per cent GST so we have filed an intervention application in that matter challenging GST,” said Irfan Motiwalla, general secretary of All India Haj Umrah Tour Organisers Association.

He also said, “Our counsels have contended that this is an outbound tour and all our services are outside India and when nothing is happening in India, then how can the government recover GST from pilgrims?”

“We are paying GST on tickets, which we buy here and we also pay GST on money transfer. We are paying GST on services in India but how can the government take tax on services that would be given outside India?” he said adding, “Tour operators would not pay GST from their pocket so ultimately it would burn a hole in pilgrims’ pocket.”

According to him, “Haj committee is exempted from GST on the ground of bilateral agreement between India and Saudi government but the said agreement also speaks about private tour operators so the government must not impose GST on us too.”