A STUDY ON IMPACT OF GST ON HOTEL INDUSTRY WITH REFERENCE TO AHMEDABAD CITY

Abstract

After three decades, reforms in indirect tax system reflected on 1st July, 2017 in India. Goods and Services Tax is a single indirect tax with an aim of ‘one nation - one tax’ and is applicable in whole country. This present research work attempts to highlight the impact of Goods and Services Tax on Indian Hospitality Industry. With the implementation of GST, Indian market will be unified and this will also lower the cost of business in long run. The hotel industry was in burden with multiple taxes on amount charged for different services. Additional charges on various activities of hotels were charged previously. But now in GST, single tax charged with clearly stated slab rates for various services. Slab rate increases with increase in amount of services charged i.e. for basic services rates are less and luxurious services are under high GST slab rate. Here we try to explain the impact of GST system on hoteliers of Ahmedabad city. For this purpose researcher collected samples from 22 hotels of the city. This study aims to evaluate the perception of the hotel owners and their experience in dealing with customers after the implementation of GST.