OTOAI urges Maldives to reconsider 17% TGST as overseas sellers face compliance rules from October


The Outbound Tour Operators Association of India (OTOAI) has urged the Maldives Government to reconsider the 17% Tourism Goods and Services Tax (TGST) being extended to overseas sellers from 1 October 2026. The measure, enacted through the Eighth Amendment to the GST Act, brings foreign tour operators, travel agents and booking platforms supplying Maldivian accommodation, meals, transport and tourist activities into the tax regime. MIRA has introduced registration, online filing and record-keeping requirements, with no MVR1 million registration threshold for affected suppliers. OTOAI president Himanshu Patil said the move could pressure contracts and consumer pricing. Separately, UK trade body ABTA has sought a six-month delay. India recorded 131,625 Maldives arrivals in 2025 and 74,173 by 10 August 2026.



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