Monday, August 5, 2024 Cruise operators are increasingly concerned about regulatory challenges, such as the prohibition of casinos along the Indian coastline, with the exception of Goa. Casinos enhance the allure of cruises, drawing in travelers looking for entertainment and leisure activities. The ports in Visakhapatnam, Mumbai, Mormugao, New Mangalore, Kochi, Chennai, and Tuticorin have successfully attracted international cruise liners, yet the cruise tourism market in India remains modest at $100 million, which accounts for merely 1% of the global market.
This limited market share exists despite India’s vast potential for growth, given its extensive coastline and over a hundred navigable rivers. The 2024 budget introduced some tax incentives for foreign cruise liners, representing a positive development. However, industry experts highlight that significant infrastructure gaps continue to impede the sector’s expansion.
Examining the current taxation regime, no specific concessions under the Goods and Services Tax (GST) have been proposed for the cruise industry, with ticket sales continuing to incur an 18% GST. For non-resident cruise ship operators, a particular provision has been established, wherein only 20% of the revenue generated from passenger carriage will be considered taxable income. This move aims to provide some relief to foreign cruise companies, although it might not be sufficient to spur substantial growth in the market.
Additionally, the budget has intr.