MIRA announces the criteria for determining whether a place is established on a tourist establishment

With the exception of shops operated exclusively for the employees of the tourist establishment, places established on tourist establishments are required to be registered for tourism sector GST under GST Act. MIRA issued a tax ruling on 2 May 2016, stating the criteria for determining whether a place is established on a tourist establishment.

As per the ruling (TR-2016/G33), places established on a tourist resort or within the territory of a tourist resort as determined by the Ministry of Tourism, will be considered as a place established on a tourist establishment. Similarly, places established on tourist hotels or tourist guesthouses located on land leased by the appropriate State authority will also be considered as places established on a tourist establishment. In other cases, places situated within the premises of a tourist hotel or guest house would be considered as a place established on a tourist establishment, if the operating license issued by the Ministry of Tourism specifies that such place is part of the hotel or guesthouse.

If a person or group of persons, whose place of business is not established on at a tourist establishment,  makes temporary visit or visits to supply a good or  service to the operator or guests and leaves the establishment after supplying the goods or services, such supplies do not fall within tourism sector GST.