Gangtok, May 16:
Hoteliers beware; evading GST will cost you a lot as the Tourism & Civil Aviation Department has started an aggressive sensitization campaign checking for compliance with GST norms. The Commercial Taxes Division of the Finance Department had earlier issued a notification in this regard. It may be recalled here that Sikkim is witnessing massive tourist arrivals in the current year after the decrease in COVID -19 cases and widespread vaccination.
The years 2020-2021 and 2021-22 were largely wasted because of the COVID-19 pandemic and lockdowns. Therefore, in order to ensure that the Government gets its GST revenue, the Tourism Department has taken this massive exercise. Several teams have been constituted which are visiting hotels in different parts of the State to sensitize them for GST compliance.
In view of high tourist arrivals, it is expected that the GST revenue of the State shall see a significant jump. The Additional Chief Secretary, G.P. Upadhyaya has been personally supervising this campaign to ensure compliance by all the hoteliers.
Must tell here the majority of hoteliers specially those who are running on lease from outside is skipping taxes and in Sikkim there are as many as 1100 hotels and resorts but GST collection is only 9 crore in the year 2020-21.