Goa’s hospitality industry welcomes 50% GST rebate for hotels operating in hinterland

Stakeholders in Goa’s hospitality industry have welcomed the state government’s Budget announcement, which promises a 50% rebate on state Goods and Services Tax (GST) along with several incentives for those investing in hotels located in the state’s hinterland.

Chief Minister Pramod Sawant, while presenting the state Budget during the previous legislative assembly session, outlined key measures aimed at encouraging infrastructure development in hospitality and medical tourism sectors.

The proposal included a significant tax rebate, exemption from stamp duty and registration charges, and waiver on various processing fees for investors establishing three-star and above category hotels or hospitals in hinterland talukas such as Bicholim, Sanguem, Canacona, Quepem, Dharbandora, Ponda, and Sattari.

The Budget is set to be passed during the next House session scheduled for June. Industry representatives have responded positively, viewing the move as a major step towards decentralising tourism and encouraging sustainable growth. Gaurish Dhond, President of the Goa Hotel and Restaurant Association, applauded the initiative, saying it would support the development of both hospitality and medical tourism in underdeveloped areas.

Basuri Desai, owner of ‘The Inaka Goa’, an eco-conscious resort located in Canacona, has already been promoting hinterland tourism through his property near Cotigao Wildlife Sanctuary. He noted that the new tax incentives are likely to encourage further investment. “As an entrepreneur operating in hinterland tourism, it gives me much-needed encouragement to expand my business in lesser-known areas,” he said.

Desai emphasised that the policy could create employment, preserve local culture, and protect the ecological heritage of the region. He believes areas such as Canacona, Sanguem, Quepem, and northern talukas like Pernem and Sattari will significantly benefit if the policy is implemented effectively.

Source: CNBC TV18