Impact of Goods and Services Tax implementation on Hotel Industry: Perception of Accounting Professionals

CA Priya Jain, M.K. Sharma, Meha Saxena, Shweta Gupta

Vol 11 , Issue 1 , January - June 2024 | Pages: 52-67 | Research Paper

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https://doi.org/10.17492/jpi.vision.v11i1.1112404

Published Online: June 15, 2024

Author Details ( * ) denotes Corresponding author

1. * CA Priya Jain, Sr. Assistant Professor, Department of Accounting and Taxation, IIS (Deemed to be University), Jaipur, Rajasthan, India (priyajain31772@iisuniv.ac.in)

2. M.K. Sharma, Dean, School of Commerce, IIS (Deemed to be) University, Jaipur, Rajasthan, India (mk.sharma@iisuniv.ac.in)

3. Meha Saxena, Sr. Assistant Professor, Department of Management, IIS (Deemed to be University), Jaipur, Rajasthan, India (meha.saxena@iisuniv.ac.in)

4. Shweta Gupta, Professor, Department of Accounting and Taxation, IIS (Deemed to be) University, Jaipur, Rajasthan, India (shweta.gupta@iisuniv.ac.in)

Tourism is the backbone of every country. In India, tourism contributed 9.2% of GDP in 2018, which reduced to 7.6% in 2022. The decrease suggests that there are certain issues which are affecting the sector. The objective of this paper is to analyse the perception of accounting professionals in relation to taxation before and after implementation of GST in the hotel industry. Data is collected using structured Questionnaire from 76 CA, CS and CMA. For testing, One Way ANOVA is applied. The findings reveals that accounting professionals have good knowledge about GST and its implications. GST has a positive impact as it has broadened tax base, increased revenue of government and hotels. However, administrative and compliance requirement has become difficult, penalty on delay in filing returns is quite high, and cost in terms of payment of salary has increased. Online server has many deficiencies and claiming ITC is difficult. Further amending and reducing GST Rates could remove the above barriers.

Keywords

GST; Hotel Industry; Service Sector; Restaurant; Room Rent; Accounting Professionals

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