The Travel Agents Federation of India (TAFI) organized a meeting at The Park, New Delhi on Thursday. The event, marked by the induction of new members into the federation, also served as a platform for addressing the intricate dynamics of the Goods and Services Tax (GST).
Anil Kalsi, Vice President, TAFI said, “GST is a good process but compliances do take a toll. It is a cost to us,” he stated, encapsulating the concern of inadvertently making errors. However, he remained optimistic about the nation’s financial health, stressing the importance of collaboration within the industry to overcome the shortage of skilled manpower.
The meeting took an enlightening turn with insights from Manish Mohan Govil, Principal Commissioner of CGST & CE Delhi North, who painted a promising picture of India’s economic trajectory, with the tourism and travel sector playing a crucial role. Govil projected that by 2030, India is poised to become a $5 trillion economy, with the tourism sector potentially blossoming into a $1 trillion economy by 2047. He attributed this growth to the increasing disposable income among Indians and the expansive development of tourism infrastructure across the country, including in Tier-II and Tier-III cities.
Govil further elaborated on the transformative impact of GST on the taxation landscape, describing it as a “sixth lane highway” for the economy. By consolidating multiple taxes into a single framework, GST has simplified the taxation process, making it more robust and technology-driven. “GST is based on a technology platform. So, it is a simple and robust system based on trust,” Govil explained, emphasizing the government’s initiative to help travel agencies navigate GST compliance with greater ease through various schemes.
The discussion also highlighted India’s rising popularity as a destination among international tourists, who are now exploring beyond the traditional golden triangle. This shift underscores the diverse opportunities available for travel agents and tour operators, further fueling the sector’s growth prospects.
