Daman-Diu Offers Rs.5 Lakh GST Relief for Wedding MSMEs

VAPI: Daman-Diu is rolling out a financial incentive to turn the Union Territory into a destination-wedding hub, offering eligible MSMEs reimbursement of up to ₹5 lakh in GST collected on wedding-related services.

The scheme, introduced to strengthen tourism and generate business for local service providers, covers hotels, resorts, caterers, event managers, decorators, photographers and transport operators involved in destination weddings.

Under the initiative, eligible MSMEs will receive reimbursement of the actual GST paid on destination wedding-related services, subject to a maximum of ₹5 lakh, whichever is lower. The benefit can be availed over two consecutive financial years.

The administration said the initiative is aimed at increasing tourism-linked economic activity and creating opportunities for local businesses by positioning Daman-Diu as an attractive venue for destination weddings.

The scheme, however, has a limited coverage. Assistance will be provided to the first 25 eligible MSMEs on a first-come, first-served basis. Weddings conducted at non-commercial venues will not qualify for reimbursement.

To become eligible, service providers must have valid Udyam and GST registrations. Applicants will also have to submit GST invoices for wedding-related services, booking confirmations, photographs of the events and other prescribed documents.

The administration has cautioned applicants against submitting false information. Any such claim will lead to recovery of the assistance along with 8% annual compound interest, besides possible legal action and permanent disqualification from future incentive schemes.

The initiative is part of efforts by the local administration, in coordination with the Central Government, to strengthen Daman-Diu’s tourism economy while creating additional opportunities for the MSME and services sectors.

By linking GST reimbursement with destination weddings, the administration expects hotels, hospitality businesses and allied service providers to gain from increased wedding-related tourism and spending in the Union Territory.