Sikkim to launch enforcement drive for GST collection

The Sikkim government on Thursday said that it will launch an enforcement drive from February 17 next to force the hoteliers to make timely payment of Goods and Services Tax (GST). It has been observed that the contribution of GST and other taxes from the hotel industry to the overall state revenue remains below par despite the state being a major tourist destination, the Commercial Taxes Commissioner, Jigmee Dorjee Bhutia told reporters.

The enforcement drive may even include the arrest of the defaulters under Section 69 of the Sikkim Goods and Services Tax Act, 2017, Bhutia said and asked all hoteliers to pay up GST and other taxes before February 17 next. The Commercial Taxes Department had conducted a field survey of the hotels recently and found that the number of defaulters among hoteliers is very high and the majority of the defaulters are ignorant about the consequential law for non-payment of GST and other taxes, he said Under the circumstances, it is essential to make stakeholders aware about the legal provision before taking coercive action, Bhutia said, adding that the Commercial Taxes Division of the Finance Department has decided to publish notices in local newspapers urging the hoteliers to obtain registration, pay GST on time and file returns regularly.

The Commercial Taxes Division in association with Sikkim Hotels and Restaurants Association (SHRA) has also decided to organize an awareness drive on GST followed by an enforcement drive from February 17 next to force the hoteliers to make timely payment of GST and other taxes, he said. The Commercial Taxes Commissioner further said that It has been noted that most of the property owners and license holders have leased out their business to a third party, but that does not mean that they are not required to pay GST and other taxes.

The rule says that it is the duty of the Lessor (the property owner or licensee) to register himself/herself as a taxpayer providing leasing service and collect GST on the lease amount and deposit the GST to the state government, Bhutia said. There are more than 600 hotels in Sikkim catering to around 20 lakh tourists annually..

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