Goa Chamber of Commerce and Industry Appeals to GST Commissioner Over Property Owner Tax Liability
The Goa Chamber of Commerce and Industry (GCCI) has formally urged the state GST commissioner to reconsider a recent directive that holds property owners accountable for Goods and Services Tax (GST) compliance during events held on their premises. This move has sparked significant concern within the business community, with GCCI highlighting serious legal and practical implications of the deeming provision that shifts tax liability onto property owners who are not the actual suppliers of goods or services.
Legal and Compliance Burdens on Property Owners
GCCI Director General Sanjay Amonkar emphasized that the order will inadvertently impose substantial compliance burdens on property owners and venue operators across Goa. "There are legal concerns regarding the scope of the order and the validity of imposing obligations on property owners under the cited provisions," Amonkar stated. He further pointed out the practical challenges faced by small venue owners in meeting advance reporting requirements and verification obligations, which could hinder their operations.
Impact on Ease of Doing Business and Tourism Sector
The industry body warned that this GST order could create an adverse impact on the ease of doing business, particularly affecting Goa's vital tourism and events sector. GCCI argued that the current framework may discourage property owners from hosting events, thereby stifling economic activity in a state renowned for its vibrant cultural and commercial gatherings.
Constructive Recommendations for Effective Implementation
In its detailed representation, GCCI has proposed several constructive recommendations to achieve the government's objectives more effectively while mitigating negative consequences. To ensure property owners do not inadvertently violate GST regulations, GCCI has suggested:
- Simplification of compliance requirements with a primary focus on event organizers rather than venue owners.
- Exemption of compliance for personal, religious, and non-commercial events to reduce unnecessary administrative hurdles.
- Introduction of thresholds to protect Micro, Small, and Medium Enterprises (MSME) property owners as a safety measure.
"Govt should also exempt compliance for personal, religious, and non-commercial events. As a safety measure, the department should also introduce thresholds to protect MSME property owners," Amonkar elaborated.
Request for Collaborative Framework Development
The industry body has also requested an opportunity to present all its recommendations in person and further assist in developing a revised compliance framework. This collaborative approach aims to balance regulatory goals with practical business needs, ensuring that GST policies support rather than hinder Goa's economic growth and entrepreneurial spirit.
