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GST Impact on Hospitality and Tourism Industry

hospitality and tourism industry

The Constitution (122nd Amendment) Bill, 2014 known as Goods and Services Tax (GST) Bill was passed by the Rajya Sabha on August 3, 2016. The GST bill is now a reality across the nation and has a significant place in the taxation ambit. The Indian Government has brought GST return filing forms in a PDF format to disclose in front of professionals.

We have already been covering several aspects of the GST Bill in the Indian economy. We also discussed the impact of GST on the oil and Gas sector. Now, we see the impact it has applied in the Hospitality and Tourism Industry. In addition to the luxury tax, the federation’s other demands include a GST set-off which subsumes interstate levies on transportation, state electricity cesses, and making an exception for the sector in the classification of export services.

Rajeev Kohli, has called it a step in the right direction and further adds, “We are a segment of the economy which is overtaxed and we are paying high double-digit taxes at various levels. If the government wants tourism to be a high driver of growth, then it is time to think differently. Tourism and travel cannot be perceived as a luxury anymore.”

Recently various industry experts have shown a better future of the tourism and hospitality industry by various means. The experts asserted  it was a time of strictness and much more compliance making the industry to further operationalise at a slower pace. But according to the latest reports, the industry is once again to rise over the expected digit growth and make profits as anticipated.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Subodh Kumawat
Subodh has done with numerous professional degrees ranging from Human Rights to Banking along with MBA in HR Marketing. He is also interested in the field of tax-related articles and blog as per the industry based norms. Having expert knowledge in diverse sectors, he assures facts and figures along with testimony, in his articles. Working in SAG Infotech, he is a trusted author among the readers globally. View more posts
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3 thoughts on "GST Impact on Hospitality and Tourism Industry"

  1. There is no clarity taxes being levied for inter-state tourism . The Status of Yellow Board Passenger Cars , permits , octroi for Transport sector . We all assume it is one state , one tax .Please clarify

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