Chennai: The Union tourism ministry’s decision to assess the impact of the single tax system under GST has brought relief to Tourism industry in the country.

According to sources, the move will help the government understand the concerns of the industry and initiate appropriate action to bring down the GST rates for the tourism industry. Already the cruise tourism sector is beginning to feel the impact of GST.

The major cruising nations like UK, USA and Germany have zero rate domestic cruises. India should also have zero rating for cruise tourism as it is in nascent stage in country and such steps will provide it a much needed boost, the Union shipping ministry had said in a proposal to the GST Council. It also mentions that transportation of passengers (with or without belongings) by inland waterways is not a taxable service under the Finance Act, 1994 and the same rule should be applied to cruise ships operating domestically or internationally.