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

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.