Blackbook (Sakshi Bavkar)

UNIVERSITY OF MUMBAI
A PROJECT REPORT ON
“IMPACT OF GST ON HOTEL INDUSTRY WRT HOTLES
IN THANE CITY.”
SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR IN COMMERCE (ACCOUNTING AND FINANCE)
T.Y.BAF. (SEMISTER-VI )
UNDER THE FACULTY OF COMMERCE

BY
MS. SAKSHI VIJAY BAVKAR
ROLL NO.: 33
YEAR: 2023-2024
UNDER THE GUIDANCE OF
PROF. ASHISH MULAY
ANAND VISHWA GURUKUL
SR. NIGHT COLLEGE
Raghunath Nager Thane (W)
ACADEMIC YEAR
2023-2024
1
UNIVERSITY OF MUMBAI
A PROJECT REPORT ON
“IMPACT OF GST ON HOTEL INDUSTRY WRT HOTLES
IN THANE CITY.”
SUBMITTED TO.
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR IN COMMERCE (ACCOUNTING AND FINANCE)
T.Y.BAF ( SEMISTER VI )
UNDER THE FACULTY OF COMMERCE

BY
MS. SAKSHI VIJAY BAVKAR
ROLL NO.: 33
YEAR: 2023-2024
UNDER THE GUIDANCE OF
PROF. ASHISH MULAY
ANAND VISHWA GURUKUL SR. NIGHT COLLEGE
Raghunath Nager Thane (W)
ACADEMIC YEAR
2023-2024
2
ANAND VIAHWA GURUKUL SR.NIGHT COLLEGE
(ARTS AND COMMERCE)
RAGHUNATH NAGAR, TEEN HATH NAKA, THANE (W)
THANE 400604.
CERTIFICATE
This is to certify that Miss. Sakshi Vijay Bavkar of T.Y.BAF (semester VI)
has worked and duly completed his
Project Work for the degree of Bachelor of management studay under the
faculty of Commerce in the subject of Impact Of GST On Hotels and his project is entitled,
“ Impact Of GST On Hotel Industry w.r.t Hotels In Thane City.
I further certify that the entire work has been done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or Diploma of any University.
It is his own work and facts reported by his personal findings and investigations.
Signature of Principal
Name and Signature of Guiding Teacher
Signature of Coordinator Signature of External Guide
DECLARATION BY LEARNER
3
I the under signed Mr. Sakshi Vijay Bavkar his by, declare that the work embodied in this project work
titled “Impact Of GST On Hotel Industry w.r.t Hotels In Thane City , forms my own contribution to the
research work carried out under the guidance of Prof . Ashish Mulay is a result of my own research
work and has not been previously submitted to any other university for any other Degree/Diploma to
this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as such
and included in the bibliography.
I, his by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.
DATE OF SUBMISSION Ms. Sakshi Vijay Bavkar
Certified by: Prof. Ashish Mulay
ACKNOWLEDGMENT
4
To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.
I would like to acknowledge the following as being idealistic channels ad fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal, Dr.Harshala Likhite for providing the necessary
facilities required for the completion of this project.
I take this opportunity to thank our Coordinator Prof. Ashish Mulay for her moral
support and guidance.
I would also like to express my sincere gratitude towards my Project guide Prof.
Ashish Mulay whose guidance and care made the project successfully.
Sakshi Vijay Bavkar
TABLE OF THE CONTENT
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CHAPTER NO. TITLE OF THE CHAPTER PAGE NO.
1 INTRODUCTION 11-45
1.1. Introduction of GST
1.2. Pre gst information
1.3. Post gst information
1.4. Pros of GST Information
1.5. Features of GST
1.6. Advantages of GST towards

hotel & Restaurants
1.7.Disadvantage of GST
1.8. Dual GST
1.9. Features of Dual Model
1.10. Gst registration process
1.11.GST on food services
1.12. GST on food items
1.13. Impact of GST on food
1.14 gst collection
1.15. Significant of Research
1.16. Analyses of the impact of gst

on the pricing of hotel room tariffs
1.17. Drawback of GST
1.18. Food and Restaurant Industry
1.19 conclusion
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2. RESEARCH METHODOLOGY 46-50
2.1. Introduction
2.2. Objectives of the study
2.3. Hypothesis of the study
2.4. Scope of the study
2.5. Limitation of the study
2.6 . Research methodology

2.6.1 Universe of the region
2.6.2 Method of sampling
2.6.3 Sample size
2.6.4 Method of data collection
2.6.4.1 Primary data
2.6.4.2 Secondary data
2.7. Method of Data Analysis
3. Review of literature 51-55
3.1. Review of research papers
4. DATA ANALYSIS AND 56-75

INTERPRETATION OF DATA
5. FINDINGS AND CONCLUSION 76-77
5.1. Findings
5.2. Conclusion
Suggestions 78
Bibliography 79-80
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ANNEXURE 81-83
LIST OF CHARTS AND DIAGRAMS
Sr.No Particulars Page No.
1. Table 4.1. Age group of the respondents 56

2. Table: 4.2 Gender of the respondents 57
3. Table 4.3. Occupation wise Classification 58
4. Table 4.4. Shows awareness among the respondents 59
about GST.
5. Table 4.5. Shows awareness about GST is levied on hotel 60
bill.
6. Table 4.6. Shows percentage GST applicable on hotels 61
and restaurant.
7. Table 4.7.Shows GST is beneficial to hotel and 62

restaurant industry
8. Table 4.8. Shows how often you prefer to visit Hotel & 63
Restaurant
9. Table 4.9. Shows after implementation of GST 64

respondents visit to hotel and restaurants
10. Table 4.10. Shows if GST is better substitute for VAT 65

and service tax.
11. Table 4.11. Shows if GST is affecting in negative way on 66

hotel restaurant industry.
12. Table 4.12. Shows changes in bill preparing time after 67

GST implementation.
13. Table 4.13. Shows Percentage of Restaurant in Thane 68
has GST on the services
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14. Table 4.14. Shows hotel staff finding GST easier than 69
VAT and service tax
15. Table 4.15. Shows Customers response on GST 70
16. Table 4.16. Shows how respondents got information 71

about GST applicable to Hotels
17. Table 4.17. Shows Changes in GST regarding hotel 72
industry
18. Table 4.18. Shows id GST is difficult to understand 73
19. Table 4.19. Shows the Type of GST applicable in Thane 74

city hotel
LIST OF ABBREVIATIONS
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Sr. No. Abbreviations Full Form
1. GST Goods & Service Tax
2. VAT Value Added Tax
3. CGST Central Goods & Service Tax
4. SGST State Goods & Service Tax
5. UTGST Union Territory Goods & Service
Tax
6. GDP Gross domestic product
7. NRAI National Restaurant Association of
India
8. ITC Input Tax Credit
9. PAN Permanent Account Number
10. OTP One Time Password
11. TRN Temporary Reference Number
12. ARN Application Reference Number
CHAPTER 1: INTRODUCTION
1.1. Introduction Of GST :

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GST is known as the Goods and Services Tax. GST is an indirect tax (or consumption tax) used
in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax:
comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. The
Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect
on 1st July 2017. It was a very significant step in the field of indirect tax reforms in India. By
amalgamating a large number of central and state taxes into a single tax, the aim is to mitigate
cascading or double taxation. In a major way for common national market. From the consumer point
of view, the biggest advantages should be in terms of a reduction in the overall tax burden on goods. It
is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT,
services tax, etc. In Other words, Goods and Service Tax (GST) is levied on the supply of goods and
services. Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%,
12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not
taxed under GST and instead are taxed separately by the individual state governments, as per the
previous tax system. GST is a single domestic indirect tax law for the entire country.
There are various taxes that have to be paid at every stage and are differently collected by state and
central government and rates differ from one state to another. GST will unify the whole nation and
taxes will be divided among central and state government, which will make it easier to provide
services and goods across country, as no more additional state taxes will be imposed. It is a
comprehensive tax levy on manufacture sale and consumption of goods and services at a national
level. The 101st Constitution Amendment Act, 2016 was passed by the parliament paving the way for
the Government to reconstruct the presently distributed indirect tax law regime into a unified tax
structure through a Goods & Services Tax Act. In April 2017 the president gave his assent to the 4
bills related to GST.
 CGST Act 2017
 UTGST Act 2017
 IGST Act 2017
 SGST Act 2017.
Figure No 01: GST Structure
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Sources: http://www.cleartax.in
It is a comprehensive, multistage, destination-based tax comprehensive because it has subsumed

almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every
step in the production process, but is meant to be refunded to all parties in the various stages of
production other than the final consumer and as a destination-based tax, it is collected from point of
consumption and not point of origin like previous taxes.
HOTEL INDUSTRY:
Indian tourism industry is a major contributor to the Indian Economy, and it is expected that it will
grow at a higher pace in times to come and become a major revenue earning industry for the
Government. Hotels and restaurants are a major component of the tourism industry and can be termed
as the backbone of the industry without which the industry cannot survive. Further, it provides
employment opportunities to a large population of the country and a large number of micro, small and
medium entrepreneurs are dependent on this sector as a source of their livelihood. Thus, it becomes
very important for the Government to address issues faced by the industry and ensure its smooth
progression. In the erstwhile regime, hotel & restaurant industry was faced with the problem of
compliance with multiplicity of taxes viz. VAT, Service Tax, Luxury Tax and even excise duties on
manufacture of pastries etc. However, with the advent of the GST Law, all these taxes have been
subsumed under one single tax. However, with the new law has come a variety of new problems and
issues which are facing the industry. a restaurant may be meant to be a common place where people
enjoy cooked food and other facilities as per their preferences.
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Most of the Customer also like multinational food, The entry of multinational fast food chain in India
has changed the restaurant market. Immense rise of the quick service restaurant (QSR) industry in India
gave a clear way to the multinational fast food chains and in the past few years we have seen the
establishment of number of multinational fast food chains in different regions. For example Dominos,
Pizza Hut, KFC and so forth. As the concept of quick service restaurant was booming on the other hand
the eating style of consumer was also changing. Eating out was giving consumer immense pleasure and
consumers were also ready to spend copious amount of money. As the cuisines of different-Countries is
becoming of more interest and the chase for and uplifted eating knowledge drove them to high-end
restaurants. Not just the change in taste or eating habits but in the past few years the food hotel industry
has undergone through many changes and among them one change was in the use of technology where
the concept of online food ordering services was evolved. This Concept gave an opportunity to many
entrepreneurs as well as to the restaurant owners of ordering and delivering the food at the doorstep of
the consumers and among them Zomato, Swiggy. The Hospitality industries and Indian tourism is one
of the most competitive and steadily growing industries in the country. And With the motto ‘Atithi
Devo Bhava’ (‘the guest is equivalent to God’) Indian tourism industry was expected to reap great
benefits under the GST regime. As per research study called ‘India 2019 Annual Research’, which
shows that travel and tourism in India contributed 9.2% of the GDP and provided 42.7 million jobs or
8.00% of the total employment. Total contribution by travel and tourism sector to India GDP is
expected to increase to US$ 275.2 billion in 2025. Travel and tourism is the third largest foreign
exchange earner for India. Goods and Service Tax on food services in India can be 5%, 12% or 18%
depending on a variety of factors including but not limited to type of establishment and location of
restaurant/food service provider. The implementation of GST on food services replaced the earlier
VAT and service tax regime, however, the service charge which is implemented by restaurants is
separate from GST. It is notable that alcoholic beverages still attract VAT, which is a state level tax,
therefore restaurants serving both food and alcoholic beverages will feature separate taxes with GST
being applicable to food and non-alcoholic beverages while VAT will be charged on alcoholic
beverages served. Apart from food services, GST on food is also applicable to food items purchased by
the common man which currently feature rates ranging from nil to 18% GST.
According to the National Restaurant Association of India’s 2013 India Food Service Report, the
current size of the Indian food services industry is Rs.2,47,680 crore and is projected to grow to
Rs4,08,040 crore by 2018 at the rate of. 11% .This growth is further fueled by the growth of the great
Indian middle class. Many dishes in India could be cheaper after GST. GST is a mixed bag of better
and easier rules and regulations, and increased costs and compliances. The Hotel and Restaurant
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Association of western India had been lobbying for a GST rate of 5% as it believed that a lower rate
will bring in more customers and allow businesses to compete with opponent.
Figure No 2: Indirect Taxes Pertaining to the Hotel Industry
Source:http://www.cleartax.in
1.2. Pre GST:

Under the previous indirect tax regime, both Centre and States levied and collected taxes on goods and
services separately. The tax collected at each level of authority was as per the respective subjects
enumerated in the Union and State Lists. In respect of goods, the Centre had powers to levy tax on the
manufacture of goods except alcohol for human consumption, narcotics etc. Whereas the State
governments had powers to levy tax on the sale of goods. In respect of Services, only the Centre had
the power to levy and collect Service Tax. Similar to other industries in India, there were multiple
taxes applicable to hotel industry. These were chiefly in the form of value added tax (VAT), luxury
tax and service tax. The VAT that ranged between 12% and 14.5% as well as the luxury tax, was
applied over and above this.
1.3 Post GST :

Under the Goods and Service Tax, the hotel industry stands to reap the benefits and uniform tax rates,
and easy and better utilization of input tax credit. As the final cost to end user decreases, expect the
industry can expect to attract more overseas tourists than before. This would ideally result in improved
revenues for the government, and there are many pros to this new tax regime which could help the
industry’s growth in the long run. For instance, complementary food (like breakfast) was taxed
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separately under VAT, but now it will be taxed under GST as a bundled service.
1.4 Pros of GST:

1.4.1 Administrative Ease
GST will abolish several other taxes, leading to a reduction in procedural steps and more chances to
streamline the taxation process. Because of GST Administrative work should be easy. It is easy to
understand for everyone, before GST the administrative work is time consuming.
1.4.2 Clarity for Consumers

It was sometimes difficult to differentiate between a Value Added Tax and an entertainment tax for
the common man. However, under the GST regime customers will see only a single charge on their
bill and it would give them a clear picture of the tax they are paying.
1.4.3 Improved Quality of Service

. How many times have you had to wait in the hotel lobby wondering if you would miss your flight
back home because your bill was still being prepared? With just one tax to compute, the checking-out
process at hotels and restaurants will now become easier – another perk that the hospitality industry
can brag about.
1.4.4 Availability of Input Tax

The tourism and hospitality industry will find it easier to claim and avail input tax credit (ITC) and
will get full ITC on their inputs. Before GST, the tax paid on inputs (raw edibles for food, cleaning
supplies etc.) could not be adjusted against the output without any complications. However, this will
become easier in the GST regime.
1.5 Features of GST:

1.5.1 Single Indirect Tax
GST has been introduced as a single, unified tax reform. It has eliminated many existing indirect center
and state taxes like Central Value Added Tax, Special Additional Duty of Customs, Service Tax, and
VAT and converted them into a single tax. The elimination of these indirect taxes has not only made
tax compliance easier for businesses but has also helped in making many of the goods and services
more affordable for the consumers
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1.5.2 Input Tax Credit System
One of the most prominent GST features in India is the input tax credit. If a manufacturer or
service provider has already paid input tax on a purchase, the same can be deducted from their total
output tax liability. The input and output invoices need to match to take advantage of the tax credit.
This helps in removing the cascading tax effect or the traditional ‘tax-on-tax’ regime. Moreover, it
also helps in reducing tax evasion.
1.5.3. GST Composition Scheme

SMEs with an annual turnover of up to Rs.1 crore or Rs.75 lakhs in specified states can also
voluntarily opt for the composition scheme. With this scheme, the businesses can pay a fixed GST rate
of 1% on their turnover. However, such businesses can then not use the input tax credit benefit. A
business needs to select between whether they want to use the composition scheme or the input tax
credit feature.
Restaurants can register under the GST Composition Scheme if the aggregated annual turnover
received less than Rs.100 lakh. Restaurants registered under the GST composition scheme will have to
pay GST at the rate of 5% of aggregate turnover divided into 2.5% as SGST and 2.5% as CGST.
Aggregate turnover will be computed on the basis of turnover on an all India basis and will include
value of all taxable supplies exempt supplies and exports made by all persons with the same PAN, but
excludes inward supplies under revers charge as well a central, state\union Territory and intergrate
taxes and cess. Further to it, restaurants availing this scheme needs to ensure that GST is charged on
the reverse charge basis on any goods received from an unregistered supplier Reverse charges is a
mechanism where the tax applies to the receiver and not the supplier.
1.5.4. Four-Tier Tax Structure

GST has a 4-tier tax structure of 5%, 12%, 18%, and 28%. All the goods and services can only be taxed
as per this tax structure. Many of the essential commodities such as food items do not have any GST.
Improved transparency and cheaper goods and services are two of the biggest advantages of this 4-tier
structure. There are several GST features, and they are already working as a game-changer for the
Indian economy. While it still has a long way to go, industries, consumers, and the government has
already started experiencing the benefits which are expected to extend further in the future.
1.5.5 Consumption Based Tax

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GST is called a consumption based tax because of it was payable to the state in which goods or
services are actually consumed. Since GST is a consumption based tax, tax revenue will be levied and
collected by the consuming state, and this helps the consuming state to protect their tax base.
1.5.6. No Tax On Tax

The cascading is avoided through full credit for taxes paid on inputs. One of the key benefits of the
goods and services tax (GST) is the end of cascading of taxes, or there will not be any tax on tax. The
cascading is avoided through full credit for taxes paid on inputs.
1.6 Advantages of GST Towards Hotel & Restaurant

1.6.1. Easy compliance
A robust and comprehensive IT system would be the foundation of GST Regime in India. All tax-
payer services such as registrations, returns, payment etc. would be available online. It would make
compliance easy and transparent. It is also easy to hotel & dine in hotel for filing their GST Returns
online.
1.6.2 Uniformity Tax Rates & Structures/Development of Common National Market

GST will ensure that indirect tax rates and structures are common across the country. It would
increase the certainty and ease of doing business. In other words, GST would make doing business in
the country tax neutral, irrespective of choice of place of doing business.
1.6.3 Removal of cascading effect

A seamless flow of tax-credit through-out the value chain and across boundaries of states, would
ensure that there is minimal cascading of taxes. This would reduce the hidden cost of doing business.
It means it also beneficial to hotel industry there is no another tax only one tax is applicable i.e. GST.
1.6.4 Single & Transparent Tax proportionate to the value of goods & services
Owing to multiple taxes levied by Central/State with incomplete or no ITC available at progressive
stages of value addition, the cost of most services in the country was laden with many hidden taxes.
Under GST, there would be only one tax from the Hotels and restaurants to consumer leading to
transparency of taxes paid.
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1.6.5 Relief in overall tax burden
Because of efficiency gains and prevention of leakage, the overall tax burden on most commodities
will come down, which will benefit the consumers.
1.6.6 Reduction of cost of services

Expert believe that costs of services will be reduced in the long run with the introduction of GST. This
is because the cascading effect of a series of VAT’s and taxes has now been erased.
1.6.7 Benefit to Smaller Hotels:
Service provider companies i.e, Hotels, Restaurants with a turnover lower than Rs. 20,00,000 are
exempt from paying GST. This will help smaller hotels avoid lengthy taxation procedures. GST
reduces the need for small hotels and food hotels to comply with service tax and VAT. GST brings
uniformity in the taxation process and allows centralized registration. This gives chance to medium
scale hotels and restaurants to file their tax returns every quarter via an easy online mechanism. This
reduces the multiplicity of taxes as they do not have the resources to hire tax experts.
Figure No 03: Advantages of GST
1.7 Disadvantages of GST

1.7.1 Additional Software Expenses
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Most businesses use ERP or accounting software to manage their day-to-day operations. These
solutions were developed as per the traditional tax laws in the country. The implementation of GST
required the businesses to switch to GST-compliant solutions or standalone GST software to keep up
with the new tax laws.Increased cost of software purchases that can assist in GST filing process leads
to higher operational costs for many hotels. Example. Winman GST. This software is useful for filing
the GST Returns.
1.7.2 Online Tax Regime

GST is an online tax system. From GST registration to filing GST returns, every aspect of this new tax
regime is done online. While businesses are gradually shifting to digital solutions, small businesses are
still not very well-versed with such modern technologies and solutions. While the government has
made the online system very simple, there is still a learning curve which can be challenging for many
businesses.
1.7.3 Higher Taxes for SMEs

It has increased the tax liabilities for small and medium enterprises (SMEs). This is because, in the
past, the excise tax was only paid by businesses with an annual turnover of above Rs.1.5 crores.
However, with the new tax regime, any business with an annual turnover of above Rs. 20 lakhs is
required to pay GST.
1.7.4 Register in Multiple States

Companies who operate their businesses in multiple states, have to register in all those states. This
adds an extra level of complexity that did not exist earlier. Example if hotel is in Maharashtra and as
well as in Gujrat then he has to register their hotels as per their states and they have to file the GST
Returns. The GST administration states that business are required to register in all the states they
operate in. This increases the burden on the business for excessive paperwork and compliance.
1.7.5 Professional fees paid
Because of GST many hotels and restaurants hires Professional services from CA i.e Chartered
Accountant for filing their GST Returns or any other work related to GST . Because of that extra
professional fees to be pay
Figure No 04: Disadvantage of GST
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1.8 Dual GST:
India has adopted dual GST. There would be two components of GST viz. Central GST (CGST) and
State GST (SGST). In India both Centre and State have been assigned the powers to levy and collect
taxes through appropriate legislation. Both the Centre and State Government have distinct
responsibilities to perform according to the division of powers as prescribed in the Constitution that
needs resources for implementation. A dual GST is therefore, is appropriately aligned with the
Constitutional requirement of fiscal federalism. Centre will collect CGST and States/Union Territories
would collect SGST/UTGST on all transactions of supply of goods or services or both. Owing to
101st constitutional amendment, Central as well as States/Union Territories could simultaneously levy
tax on supply of goods & services. Integrated GST is leviable on inter-state transactions. It is levied &
collected by the Central Government. It is equal to CGST + SGST.
1.9. Features of Dual Model
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 GST shall have two components one levied by the Centre (referred to as Central GST), and the
other levied by the States (referred to as State GST)
 Central GST and the State GST would be applicable to all transactions of goods and services
 Central GST and State GST are to be paid to the accounts of the Centre and the States individually
 Central GST and State GST are to be treated individually, therefore taxes paid against the Central
GST shall be allowed to be taken as input tax credit (ITC)
 Uniform procedure for collection of both Central GST and State GST would be prescribed in the
respective legislation for Central GST and State GST.
 Composition/Compounding Scheme for the purpose of GST should have an upper ceiling on gross
annual turnover and a floor tax rate with respect to gross annual turnover.
 The taxpayer would need to submit periodical returns, in common format as far as possible, to both
the Central GST authority and to the concerned State GST authorities.
 Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 14/15
digits.
1.10 GST Registration Process:
To obtain GST registration for a restaurant and hotel, you will have to complete the GST registration
application. Every hotel owner annual turnover exceeds Rs20 lakh has to register for GST.
Here is a step-by-step guide on how to complete registration process online on the GST Portal.
Step 1 – Go to GST portal. Click on Services. Then, click on ‘Registration’ tab and thereafter, select
‘New Registration’.
Figure No 05: New registration page
Step 2- Enter the following details in part A
 Select New Registration button
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 In the drop-down under ‘I am a’ – select Taxpayer
 Select State and District from the drop down
 Enter the Name of Business and PAN of the business
 Key in the Email Address and Mobile Number. The registered email id and mobile number will
receive the OTPs.
 Click on Proceed
 Click on Proceed
Figure no 06: Part A Form
Step 3 – Enter the two OTPs received on the email and mobile. Click on Continue. If you have not
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received the OTP click on Resend OTP.
Figure No 07: OTP Verification
Step 4 – You will receive the 15-digit Temporary Reference Number (TRN) now. This will also be
sent to your email and mobile. Note down the TRN. You need to complete filling the part-B details
within the next 15 days.
Figure No 08 : TRN No Generate
Step 5: Once again go to GST portal. Select the ‘New Registration’ tab
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Step 6 – Select Temporary Reference Number (TRN). Enter the TRN and the captcha code and click
on Proceed.
Figure No 09: Mentioned TRN NO
Step 7 – You will receive an OTP on the registered mobile and email. Enter the OTP and click on Proceed
Figure No 10: Verify OTP
Step 8 -You will see that the status of the application is shown as drafts. Click on Edit Icon
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Figure No 11: Saved Application
Source: https://cleartax.in
Step 9 – Part B has 10 sections. Fill in all the details and submit appropriate documents. Recently,
aadhaar authentication section was added and the bank account section was made non-
mandatory. Here is the list of documents you need to keep handy while applying for GST registration
 Photographs
 Constitution of the taxpayer
 Proof for the place of business
 Bank account details
 Verification and aadhaar authentication, if chosen
Bank account details are non-mandatory at the time of GST registration since 27/12/2018
Figure No 12: Gst Registration Part B Form
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Step 10 – Under the Business Details section, enter the trade name, business constitution and district.
Note: Trade name is completely different from the legal name of the business.
Moving on, select ‘Yes/No’ to opt-in or out of the composition scheme, against the field- “Option for
Composition”. Further, choose the type of registered person as manufacturers or service providers of
work contract or any other person eligible for composition scheme.
Next up, enter the date of commencement of business and date from which liability arises. Also, select
‘Yes/No’ for type of registration as a casual taxable person and if ‘Yes’ is chosen, then generate the
challan by entering the details for advance tax payment as per the GST law for casual taxable persons.
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Further, under the ‘Reason to obtain registration, select the reason as ‘Input service distributor’ if that is
the case, at this stage. Alternatively, many other options are available to choose from.
Based on the selection made, enter details in the fields that appear. For example, if you select ‘SEZ
unit’, then enter the name of the SEZ, designation of approving authority, approval order number, etc.
and upload the supporting documents.In the Indicate Existing Registrations section, choose the type of
existing registration such as Central Sales Tax, Excise or Service Tax, registration number and date of
registration. Thereafter, click the ‘Add’ button.Below screenshot shows the fields discussed above.
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Once the details are entered, you notice that the tile turns blue in colour indicating the completion of
filling up details in that section.
Step 11 – Under the Promoters/Partners tab, you may enter the details of up to 10 Promoters or
Partners. Personal details such as name, address, mobile number, date of birth, email address and
gender and identity details such as Designation / Status and Director Identification Number if the
taxpayer is a company, whether or not an Indian citizen, PAN and Aadhaar numbers must all be
entered.
Fill in the residential address and upload a photograph of the stakeholder. You are allowed to upload
PDF or JPEG files with maximum file size for upload of 1 MB. If the promoter is also the primary au-
thorised signatory, then make the necessary selection. Click on the ‘SAVE & CONTINUE’ button to
proceed.
28
Step 12 – Enter details of the Authorised signatory similar to the details entered for promoters/partners,
in step 10.
In case of GST practitioner, enter the enrollment ID and in case of authorised representative, enter ba-
sic details as asked.
29
Step 13 – Enter Principal Place of Business details.
The taxpayer’s principal place of business is the primary location within the state where he or she
conducts business. The principal place of business is usually the address where the company’s books of
accounts and documents are stored, as well as where the company’s president or top management is
based.
Report the address, district, sector/circle/ward/charge/unit, commissionerate code, division code and
range code. Also, enter the official contact number of taxpayer and nature of possession of premises as
rented or owned or shared, etc.
Next up, upload supporting documents, including consent letter or NOC for business on premises
rented out and upload the proof of SEZ Unit/SEZ Developer approval for the premises, if applicable.
Also, checkmark the Nature of business activities in the premises and add any additional places of
businesses. Click on the ‘SAVE & CONTINUE’ button.
 Notes:
To know jurisdiction, click on the hyperlink available in that section. To know the steps to check
jurisdiction, refer to our page: Steps to find GST jurisdiction.
 If you are applying for registration as the IRP for undertaking CIRP of the taxpayer company, then pro-
vide details of original registration of that taxpayer (known as the corporate debtor).
 For multiple document upload, append all documents as a single file and upload it. The maximum file
size is 1 MB and format allowed in either PDF or JPEG and maximum of two files can be submitted .
30
31
step 14 – Submit details of goods and services in the next tab along with the HSN codes or SAC for up
to a maximum of 5 goods and 5 services on the top of your list.
The following screen appears for a composition scheme taxpayer.
Step 15 – Next, enter the Bank details of the taxpayer for up to 10 bank accounts. Submission of bank
accounts details has been made optional from 27th December 2018. If you do not report these details at
the time of GST registration, then after GSTIN is granted, you will get a prompt upon logging in for the
first time on the GST portal to file a non-core amendment application to submit the bank details. Also,
upload supporting documents together with the details.
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Step 16 – Under the State Specific Information tab, enter the professional tax employee code number,
PT registration certificate number and State Excise License number with the name holding the license.
Click on ‘SAVE & CONTINUE’.
Step 17 – Next, choose whether or not you are willing to do Aadhaar authentication. Learn more about
33
the process and options available from our page, “All you need to know about Aadhaar authentication
and steps”.
Note that if the authorized signatory chose to go for aadhaar authentication, then physical verification
of premise or site will not be required to be done by the officer, except in specific cases. In such cases,
the ARN will be generated right after that is complete.
Step 18 – Once all the details are filled in go to the Verification page. Tick on the declaration and
submit the application using any of the following ways
 Companies and LLPs must submit application using DSC
 Using e-Sign – OTP will be sent to Aadhaar registered number
 Using EVC – OTP will be sent to the registered mobile
34
Figure NO 13: Verification Page
Source: https://cleartax.in
Step 19 – A message is displayed on successful application and Application Reference Number

(ARN) is sent to registered email and mobile. Note that if the authorised signatory chose to go
for aadhaar authentication, then physical verification of premise or site will not be required to be done
by the officer, except is specific cases. In such cases, the ARN will be generated right after that is
complete.
Figure No 14: Successfully applied for GST registration
35
You can check the ARN status for your registration by entering the ARN in GST Portal.
1.11 GST on Food Services

The following are the key rates applicable to GST on food services.
 5% GST on food services provided by restaurants (both air-conditioned and non a/c)
 5% GST on restaurant services including room service and takeaway provided by restaurants
located within a hotel featuring room tariff less than Rs.7500.
 5% GST on any food/drink (non-alcoholic) served at cafeteria/canteen/mess operating on contract

basis in office, industrial unit, school, college, hostel, etc.
 5% GST on meals/food services provided by Indian Railways/IRCTC or their licensees both

onboard trains and on platforms.
 18% GST on restaurant services including room service and takeaway provided by restaurants
located within a hotel featuring room tariff over Rs. 7,500.
 18% GST on food services including delivery of food provided by a restaurant/food joint located
within premises of a club, guest house, etc.
 18% GST applicable to all outdoor catering services provided.

1.12 GST on Food Items:
 The following are the key GST rates applicable to some common food items
 Nil GST on fresh and chilled vegetables including potatoes, onions, garlic, leek etc.
 NIL GST on non-container packed dried leguminous vegetables(shelled) whether skinned/split or
not
 Nil GST on fresh grapes, fresh/dried coconut, fresh/dried bananas/plantain, fresh apples, fresh
pears, etc.
 Nil GST on meat (not in container whether fresh or chilled)
 Nil GST on birds’ eggs in shell (fresh/cooked/preserved)
 Nil GST on unsweetened milk (pasteurized/unpasteurized), cream, etc.
 Nil GST on container packed vegetables (uncooked/steamed/boiled)
 Nil GST on vegetables preserved using brine/other means unsuitable for immediate human
consumption
36
 5% GST on meat packed in container bearing registered trademark/brand name
 5% GST on birds’ eggs not in shell/egg yolks boiled or cooked by steaming
 5% GST on dried leguminous vegetables packed in container bearing registered brand name
(skinned/split or not)
 5% GST on ginger (excluding fresh ginger), turmeric (excluding fresh turmeric), thyme, curry
leaves, bay leaves, etc.
 5% GST on food such as meal/powder of dried leguminous vegetables
 12% GST on vegetables, fruits,nuts and edible plant parts preserved using sugar
 12% GST on vegetables, fruits, nuts and edible plant parts that are preserved/prepared using
vinegar/acetic acid.
 18% GST on food preparations such as those prepared using flour, malt extract, etc. containing
cocoa less than 40% of total weight.
 18% GST on chocolate and other cocoa products
1.13 Impact of GST on Food

Subsequent to implementation of GST, those eating out at restaurants have witnessed a simplification
of bill as GST replaced a multitude of taxes and cess such as VAT, Service Tax and Krishi Kalyan cess
to name a few. Subsequent to implementation of GST on food, a decrease in the effective tax on
restaurant bills was also evident to customers. But the decrease in the cost of eating out for customers
was observed to be marginal at best. What’s more, GST has not affected service charge which is
applied by the restaurant, hence this is still payable by the customer in addition to GST on food. For
restaurant owners, the availability of input tax credit (ITC) subsequent to implementation of GST was
expected to increase the working capital availability for restaurants. Later, amendments were made
which reduced the ITC benefit for restaurant owners. However, it is notable that, under current GST
rules, this ITC benefit is available only to those charging 18% GST, while restaurants/eateries charging
5% GST on food services do not receive ITC benefits. In terms of GST on food items such as
vegetables, fruits, meat, etc., nil GST i.e. GST exemption has been provided in case of most fresh as
well as frozen products. It is only in case of food stuff packed in containers with brand name that other
GST rates are applicable. As of yet, GST on food items or food services do not exceed 18% and no
food items are as of yet featured in the highest tax bracket of 28%. As a result, no major price
hikes/decreases have been reported subsequent to implementation of GST on food items.
37
1.13.1 Impact of GST on hotel sector:
 Multiple taxes is replaced by single tax, therefore lower tax rate helps in attracting more tourists in
India.
 Centralized registration is compulsory in each state where they providing hotel facility on own account
or through agency.
 Provision for GST audit if the total turnover is more than prescribed limit
 Hotel and restaurant has to make appropriate policy on discount offers and policies in advance, it shall
be a part of documentation.
 Every investor of inner and outsider must be connect with system Lodging industry would not have the
option to profit the information credit on the two things which will negatively affect this segment.
 All restaurant are not eligible to charge GST on food bills only those who not registered can’t charge
GST
1.14 GST Collections:

GST collections rose 27% to hit a record high of nearly RS 1.60 lakh crore in March 2023 , helping
to narrow the deficit for the full financial year to around 7%. The mop-up- based on sales in February
2021, for which returns were filed in March- was boosted by imports with revenue from imported
goods jumping 70%, while those from domestic transaction, including service imports, were 17%
higher than the corresponding period in 2020.
The impact of the corona virus pandemic was first seen in February 2020 when the lockdown in
Wuhan resulted in a disruption of shipments coming from China, where the deadly virus was first
spotted. “GST revenues crossed above Rs1 lakh crore mark at a stretch for the last six months and a
steep increasing trend over this period are clear indicators of rapid economic recovery post pandemic
1.15. Significance of Research:

 Governments:
Hotel industry play vital role in improving country’s national income. GST will affect hotel industry
positively and negatively. Accurate GST rate should be charged by government on services and food
provided by hotels; otherwise it may have negative impact on national income, Gross Domestic
38
Product, Employment and Per Capita Income of the country.
 Economy:
GST will simplify India's tax structure, broaden the tax base, and create a common market across
states. This will lead to increased compliance and increase India's tax to gross domestic product ratio.
According to a report by the National Council of Applied Economic Research, GST is expected to
increase economic growth by between 0.9 per cent and 1.7 per cent. Exports are expected to increase
by between 3.2 per cent and 6.3 per cent, while imports will likely raise 2.4-4.7 per cent. Hence, it is
necessary to study how it will impact on Hotel Industry.
 Hotels:
GST is a single indirect tax on bills of food and accommodation of customers in Hotels. It will affect
income, sale of food, services and accommodation rates of Hotels. Therefore, study of impact of Hotel
Industry is inevitable.
 Customers:
GST helps in improving customer base of Hotel Industry as it is a single indirect tax charged on bills
of customers. Hence, study is significant.
1.16 ANALYSES OF THE IMPACT OF GST ON THE PRICING OF HOTEL

ROOM TARIFFS:
In the pre GST regime, a hotel where the tariff of a room was more than Rs. 1000, service tax @ 15%
was chargeable. Though they used to get an abatement of 40% on the tariff value which resulted to
reduce the service tax to 9% but along with service tax, they also used to charge Value Added Tax at
14.5% and luxury tax of 10% of the stay charges. But for restaurants, the rate of abatement was 60%,
which reduces the rate of service tax to 6% of the food and beverage bill. Apart from it VAT @ 14.5%
was also chargeable. The bills for bundled services or social functions like marriages or seminars were
taxed with an abatement of 30%. The pre GST regime incorporated cascading effect where the
customer or the tourist used to pay taxes on taxes whereby increasing the end cost. On the other hand
hoteliers and restaurant owners were not getting any benefit of input credits on the taxes paid by them,
as central taxes like service tax was not allowed to be set off against state
taxes like value added tax and vice- versa.
39
GST Rates on Hotels Room Tariffs
Under the GST regime hotels and the restaurants will be charged separately. Hotels will be charged
with different rates depending on the value of tariff they are going to charge per night. Hotels with
tariff less than Rs.1000 will charge GST @ 12%. But hotels with tariff more than Rs.1000 and less
than Rs.2500 per night are subject to charge GST @ 12%. Hotels having tariffs between Rs.2500 to
Rs. 7500 per night are subject to charge GST @ 12%. Whereas five star category hotels with tariffs
more than Rs. 7500 per night are liable to charge GST @18%.
With GST, the Indian hospitality industry stands as a gainer not only because of uniform tax rates, but
also because they will be getting benefit of input tax credit. GST will reduce the final cost to travellers
which may result in attracting more overseas tourists than before. Increasing overseas tourist in future
will result in increasing foreign revenue for the government. In the pre GST regime complimentary
food like breakfast were taxed separately under VAT, but now under GST, it will be taxed as a
bundled service. Detailed analysis of GST rates for Hospitality and hotel industry and its comparison
with pre GST rates has been made in detail:
Breakup of Hotel Prices Pre and Post GST
Tariff Per Night GST Rates

Less Than Rs.1000 12%
Between Rs1000- 12%
Rs.2499
Between Rs2500- 12%
Rs.7500
More Than Rs.7500 18%
GST is a mixture of easy rules and regulation on one hand and increased cost and compliance on the
other hand. The table illustrated above makes it extremely easy to understand the impact of GST on the
Hotel Business. the cost of stay for two cases are comparatively cheaper under GST regime as
compared to pre GST regime. In near future many hotelier may fix the price of their tariff at Rs.7499 so
40
that the billed amount to the customer will be around Rs.8850, since it will be falling under the
category of 18% tax slab
1.16.1 ANALYSES OF THE IMPACT OF GST ON FOOD SERVICES &

RESTAURANT BUSINESS:
GST will subsume the service tax and VAT into one single rate, but eateries bills are expected to
include service charges along with GST. Detailed GST rates applicable at different forms of
Restaurants are shown in Table
Table - GST Rates on Eating Out

Restau Servic V Serving/ Not GST
rant e Tax A Serving Rate
Type T Alcohol
Non Not Serving 5%

–Air Alcohol
Condit Serving 5%
ioned 6% Alcohol
Air (60% Not Serving 5%

Condit Abate 1 Alcohol
ioned ment, 4 Serving 5%
pay . Alcohol
only 5
Partly Not Serving 5%
40%) 0
AC Alcohol
%
& Serving 5%
Partly Alcohol
Non-
AC
5 Star All 5%
Restau
rant
The GST council has introduced rates applicable for various types of restaurants. Eating at a
41
Non- AC restaurant not serving alcohol will be charged at 5% GST. Apart from it all restaurants,
whether it be partly Air conditioned and partly non Air conditioned, serving alcohol or not, completely
Air conditioned, serving alcohol or not, including eating at luxury and five-star hotels will be charged
GST at 5%. Food Truck businesses will not be affected by the implementation of the GST, so therefore
it is expected that such eateries will grow drastically in the near future.
Customers eating at various restaurants hardly pay attention to the components of taxes included in
their food bills. Pre GST food bills used to incorporate service charges, service tax and value added tax.
Below an attempt is made to show comparison of Pre and Post GST food bill.
Comparison of Pre and Post GST Food Bill
Before GST After GST
XYZ Food Zone XYZ Food Zone
Table Bill No........ Table Bill No........

No.... No....
Date ...... Date ......
Items Qty. Amt. Items Qty. Amt.
Total 1000 Total 1000
Service Charge @10% 100 Service Charge 100

Service Tax @ 5.6% 61.6 @10%
Krishi Kalyan Cess @ 2.2 GST @ 18% 27.5
0.2% (5% CGST-2.5% 27.5
* 40%) 2.2 SGST-2.5%
Swachh Bharat Cess@ 159.
0.2% (5% * 40%) 5
Vat @ 14.5%
Total Amt. Payable 1325 Total Amt. Payable 1155.00

.50
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Under GST, with effective rate of tax @ 5% for restaurant, a customer can easily save Rs. 170.5
on a transaction of Rs. 1100. Under the pre GST regime, the total tax burden on customers was around
20.5% (which includes Service Tax @ 5.6%, Krishi Kalyan Cess @ 0.2% (5% * 40%), Swachh Bharat
Cess@ 0.2% (5% * 40%) & Vat @ 14.5%). Thus, under the GST regime, a customer can save 15.5%
(20.5-18) of transactional value per transaction.
1.17. Drawbacks of GST:

Wall Street firm Goldman Sachs, in an exceedingly note 'India: Queries and Answers on GST
— Growth Impact might be Muted', has place out appraisals that the Modi Government's model for the
Goods and Services Tax (GST) won't raise development, will push up purchaser costs swelling and
may not prompt upgraded charge pay assortments. There are by all accounts certain provisos inside the
anticipated GST charge system which can be prejudicious in conveying the predefined results.
They are: India has embraced double GST as opposed to national GST. It's made the entire structure of
GST genuinely troublesome in India. The Center can need to facilitate with twenty-nine states and
seven association domains to actualize such duty system. Such system is most likely going to shape
financial just as political issues. The states are conceivable to lose the state in deciding rates once GST
is authorized. The sharing of incomes between the states and furthermore the Centre stay a matter of
conflict with no accord showed up identifying with income unbiased rate. One among the principle
downsides of the GST system might be the immediate spike inside the administration charge rate from
14% to 20-22%. The oil items are a noteworthy supporter of growth in India because of 80% of energy
wants are met through imports. inflammation in India relies upon how the administration proposes to
take in oil based commodities under GST in future. Power is vital for the extension and improvement
of India. On the off chance that power is encased beneath standard or extravagance stock in future, at
that point it'd gravely affect the advancement of India. It's said that GST would affect adversely on the
land promote. It would mean 8% to the expense of new homes and scale back interest by about 12%.
The study comprise on four components, first part includes the introduction to the GST its benefits and
disadvantages and objectives of the study. Second part of the study consists of a brief note on Food and
Restaurant business in India and literature review of the study. Third part includes the pre and post
GST tariff in hotel industry. The fourth part the study offers conclusion and policy suggestions.
1.18 Food and Restaurant Industry:

Since food constitutes an oversized portion of the consumer expense of lower income households, any
tax on food would be regressive in nature i.e. it could impact the consumption pattern of the society.
Therefore, extending GST to food processing sector will cause difficulty visible of the very fact that
43
production and distribution of food is essentially unorganized in India. On global front, most of the
countries tax food at a lower rate keeping in sight the considerations of fairness and equity. Even in few
countries like Canada, UK and Australia where food constitute a comparatively small portion of the
consumer basket, food is taxed at zero rates. While in some countries, food is taxed at a typical rate
which is as low as 3% in Singapore and Japan at the inception of the GST. Even in international
jurisdictions, no distinction is drawn on the degree of processing of food. Hence, the advantage of
lower or zero tax rates should even be extended to any or all food items in India regardless to degree of
processing. Whereas India thinks about GST on food services is 5%, 12% or 18% depending on the
verity of things including but not limited to form of establishment and place of restaurant or food
service provider. GST on food services replaced the former VAT and service tax regime. However, the
service fee which is implemented by restaurants is separate from GST. GST on food is applicable to
food items purchased by the individual which is currently at 18%
1.19. Conclusion:
Under the GST regime, both customers as well as hotel and food business owners have reason to
express joy. Customers may be pleased about the reduction in the amount of payments they will be
paying now in order to pamper their taste buds. On the other hand, hotel and restaurant owners can
celebrate because they can now claim input tax credit easily.
CHAPTER 2
RESEARCH METHODOLOGY
2.1 Introduction:
GST is the biggest tax revolution in Indian history. In India have various taxes collected by
government in that have state government and central government tax that will be applied by the
indirectly, GST is the very simple way of taxation procedure. On July 1 st 2017, when the GST was
first introduced in the country. The rates prescribed for hotels were 12% or non a/c restaurants and
18% on a/c restaurants. Lodging and hotels having tax under 1000 INR will be burdened at 5% while
those between 1000-2500 will be charged at 12%. Lodging between 2500-5000 will be charged at
18% and inns having levy over 5000 will be viewed as lavish inns and charged at 28%. These rates
44
were met such criticism from all stakeholders connected with the hotel and restaurants sector. Riyaz
Amlani, president of NRAI stated that heavy taxation and regulations would result in the leakage in
revenues and that restaurants and hotels should be given force as they give a great deal of
employments and are basic for the hotel industry to develop. The clamour for revision of rates in the
hotels was finally considered by the GST council amidst mounting criticism and protests from
different strata of the society. In 10 th Nov 2017 have GST council meeting, in that a meeting decide to
reduce the tax slab beneficial of customers. The new rates which came into effect from 15 th Nov 2017
stated that hotel have mess, canteen or etc., that hotels pay the 5% GST to the government. In that
must not have attached residents 5% GST will be divided in central and state government same
amount i.e, 2.5% and 2.5%. If there should arise and occurrence of an eatery, wreckage, container or
eating joint connected to an inn, private or cabin office, the GST rate will be applied according to the
loading facility, Just like if the rate of one rooms is more than 7500 RS then it will pay 18% GST. The
GST slab relevant for the eating place is 5%.
2.2 Objectives of the study:
 To Research on good and bad effect on hotels after GST.

 To explore knowledge about Goods and Service Act.
 To analyze about the impact on buyers and sellers in Thane city.
 To understand about its positive as well as negative impacts .
 To study the behaviroal change in hotel and food business industry after GST.
 To examine the impact of GST on restaurant food bills.
2.3. Hypothesis of the study:

1. HO: Quality of services has not improved after GST in Hotels and restaurants.
H1: Quality of services has improved after GST in Hotels and restaurants.
2.4. Scope of Study:
This research work a brief idea about Impact of GST on Hotel Industry, after the GST
45
implementation. It also highlights the future research scope and that space is infinite for the research.
We had made the survey and gather the opinions of various individual and from the hotels in thane
region to analyze and study the impact of the GST. Further research can be done by categorizing the
individual which can give us an exact idea, which category of the individual is more affected by the
implementation of the GST. Gap research can be done for few years to differential the changes and
updates in the upcoming GST bill. GST is levied on every transaction of supply of goods & services
except the exempted goods & services, Goods which are outside the purview of GST and transactions
below the prescribed threshold limits. Alcoholic Liquor for human consumption & Electricity is outside
the purview of GST. GST is not levied on Petroleum crude, high speed diesel, motor spirit (Petrol),
Natural Gas & Aviation Turbine Fuel presently. The GST Council will recommend the date on which
the GST would be levied on these goods. The scope of the project limits up to the study of GST under
indirect tax system. GST shall cover all goods and services tax. In case of petroleum and petroleum
products, it has been provided that these goods shall not be subject to the levy of Goods and Services
Tax till a date notified on the recommendation of the Goods and services Tax council to examine issues
relating to goods and services tax and make recommendations to the Union and the states on
parameters like rates, exemption list and threshold limits. The council shall function. under
chairmanship of the Union Finance Minister and will have the State Union Minister as its members.
2.5. Limitations of the study:

Due to constraints of time and resources the study is likely to suffer from certain limitations.
Some of them are mentioned below so that the findings of the study are understood in proper
perspective. The limitations of the study are-
(1) People were not sure that this online survey was safe and would not leak there information, though
there was nothing as suspicious questions which would give me their GST details.
(2) Some of the people were less known of the sectors and there information, and were unable to provide
the exact information about the same.
(3) Some of the respondents of the survey were unwilling to share information.
(4) The research was carried out in a short period of time. Therefore the sample size and other parameters
were selected accordingly so as to finish the work within the given time frame.
(5) Area of study is limited to the Thane City.
(6) The research was conducted through limited sample size i.e. of 100 respondents.
46
2.6. Research Methodology:
Research is an art of scientific investigation. In other word research is a scientific and systematic
search for pertinent information on a specific topic. The logic behind taking research methodology into
consideration is that one can have knowledge about the method and procedure adopted for achievement
of objectives of the project. With the adoption of this others can evaluate the results also. Its main aim
is to keep the researchers on the right track. The methodology adopted for studying the objective was
surveying the impact of GST on hotel industry among respondents in thane city. So keeping in view the
nature of requirements of the study to collect all the relevant information regarding the GST.
Questionnaire method was adopted for the collection of primary data. Secondary data has been
collected through the various Online newspapers, Online books and by surfing on internet.
2.6.1. Universe of the region:

The research universe was Thane city. The responses were collected by the buyers and sellers of
Thane city only.
2.6.2. Method of Sampling:

Simple random sampling is a sampling technique where every item in the population has an even
chance and likelihood of being selected in the sample. Here the selection of items completely depends
on chance or by probability and therefore this sampling technique is also sometimes known as a
method of chances.
2.6.3. Sample Size:

Keeping in mind all the constraints the size of the sample of my study was selected as 100. The
sample size was classified on the basis of age, gender, education qualification, occupation of the
respondents.
2.6.4.Method of Data Collection:
Data was collected by using two main methods i.e. primary data and secondary data.
2.6.3.1 Primary data:
There are number of sources of primary data from which the information can be collected. I
choose the following resources for my research.
47
Questionnaire: I researched using a set of some simple questions and requested the respondents to
answer these Questions with correct information. The questionnaire was uploaded on Google docs.
This questionnaire was send to the respondents through various social networking apps i.e. WhatsApp,
mail, messaging app, etc.
2.6.3.2 Secondary Data:

The secondary data was collected by referring various research papers, books, journals,
newspaper articles and surfing on internet. The secondary data collected is aimed just for reference
purpose.
2.7 Method of Data Analysis:

The data analyzing techniques used were bar graphs, pie charts, percentage method and column
method. The data collected from primary source is represented by using bar diagrams, graphs, pie
charts, etc.
CHAPTER 3 : REVIEW OF LITERATURE

Many empirical studies have been conducted on the subject of ‘Impact of GST on hotel industry’. The
48
major emphasis of research has been on various issues like Software expenses, online regime, Taxes
for SMES etc. The previous work done on GST implementation on hotel industry needs to perusal. It
has been reviewed to indicate in a general way the type of work done on this subject in India. It is
expected that the critical examination of the studies would give focus to our problem and help to
indicate the areas which have remained neglected at the hands of the researchers. . From the review of
literature, it was found that hardly there was a study which examined the perception of both customers
and hotel , restaurant owners on the implementation of GST.
3.1. Review of research papers:

Renuka R (2018):
The tour package both Indian domestic and international is rise in some amount because of GST, it will
be increased by 4.5% to 5%, but the impact of the increment will be not seen after implementation, this
is the best reply to the consumer by showing the extremely advantages against the service tax which
saw a doubling of the rate from 4.5% to 9%.The visitors and hospitality sector in India rapidly
increasing, it will be US$ 280.5 billion by 2026, and in the starting phase of GST establishment is very
tension creating time because of that is very harmful to the growth.In any case, it stays to be seen
whether the cons exceed the masters for this segment.
Aswathy Krishna (2018):

Studied GST includes a uniform tax structure and through this all the states have their own taxes before
the eatery business was loaded with various tax collection. Now this duality of tax is removed. It also
helps in improving the financial management. Hopefully, GST will help to solve the problem about
money transaction and help the hotel industry for continuous work.
Ann Abraham (2019):

The Goods and Service tax system was introduced in India to remove the defects the indirect tax
system and to have a one market in the nation. The introduction of GST rates in hotels was initially met
with resistance from the hoteliers. However after the revised rates was implemented Nov 15, 2017,
majority of the hoteliers have expressed faith in the system. Even though the majority of hotels have
incurred additional costs in transitioning towards the new system, it is expected that in the long run
GST will prove beneficial and make the fantasy of "One Nation One Tax" materialize.
Examination objective was to take a gander at the assessments of hoteliers and dissect the issues looked
by the hoteliers and to search out the ascent in consistence cost of GST. The investigation dependent on
49
testing infers that presentation of GST rates in inns met with obstruction from the hoteliers. In any case,
after the update in charge rates larger part of hoteliers communicated confidence inside the framework.
Though greater part of them have brought about extra expense on the move towards new arrangement
of tax assessment it has been effective.
Sharma (2017):
supported this and added that GST will be a powerful tool in plugging the loopholes in the current
system of taxation and provide benefits like increased GDP, employment, better markets, more exports
etc.
There were also doubts and apprehensions about the implementation of GST.
Dhanuka (2018):
It stated that this decision will benefit consumers and improve the ease od doing business as hotels will
be able to offer upgrades to customers without the fear of charging 28 percent GST.
Pandey (2017):
said that as far the GST rates applicable to hotels in India are concerned, it was very high when
compared to its Asian counterparts. This could lead to having adverse effects in the hospitality sector in
the long run. While Japan levies a tax rate at 8 percent in the hospitality sector ,Singapore levies at 7
percent, India definitely stands at a weak spot.
Akshay R. Rakhunde, Dr. Priti Rai. (2019):

Examined the influence of GST on hotel industry, Nagpur. The study was chosen 3 star, 4 star, 5 star
hotel in Nagpur. The study found that GST helps in improving the financial management and
minimizes the problem for hotel community leading to cost increase and free flow of negotiation. The
study concluded that maximum hoteliers in Nagpur are supporting GST.
Panwar, D & Patra, S. (2019):

Identifies the influence of goods and services tariff on the restaurants and food service trade in India.
The study is exploratory in nature which focuses on analysis of the secondary data was gathered from
the newspapers, magazines and from various websites which have published and focused on various
determinants of Goods and Service tariff and how it influence the restaurant bills and the marketing
factors of these companies/businesses. The study revealed that with the emerging changes in tax layout,
50
the GST will impact primarily the promotional strategy of restaurants and food service trades and will
give consumers clear picture of taxes they pay in restaurants. Therefore restaurants and food service
businesses must draw outline of future in view of evaluation of GST and its impact on their businesses
and functions mandatorily.
Diksha Panwar and Sidheswar Patra (2017):

Dissected the effect of GST on Restaurants and nourishment administration business in India , the
target of the examination was to discover the experiences in execution and to feature the unfavorable
impacts of cafés and nourishment industry. The investigation presumes that incessant change in charge
rates and backward tax collection strategy disheartens the new contestants in the café business.
Dr.Kala Ganeshan and Deepa (2017):

Conveyed a contextual analysis on GST in the administration area with extraordinary reference to
Hotel industry. The goal of the investigation was to examine an outcomes of GST on
Chidambaramvials extravagance resort . The investigation finishes up at a positive note that it's a
straightforward and uniform assessment the nation over which could decrease tax avoidance and make
sends out increasingly serious, could carry more income to the exchequer.
Jonathan, G Gabriel Prabhu (2017):

In this research paper researcher try to explain that how the restaurant bill will look under GST and
what are its implications for the end consumers and overall industry. They explains levy of GST on
hotels and restaurants with certain examples. Researchers described that the effect of GST on different
types of restaurant with the example of what are the effects on bill of A/C hotels and non A/C hotels
due to GST. They also compare the situation of restaurants after GST and before GST. Before the
introduction of GST in the two distinct portions of one restaurant one with A/C and other without A/C,
then it is logical that the customers who take services in non A/C conditioned portion is not charge with
the higher burden of tax and charged at the lower rate than A/C portion. In the same restaurant tax rates
are different in A/C and non A/C portion.
At the end researchers conclude that it is neither beneficial for the business owners nor for the
customers.
K. RahmathNisha, K. MohmedJasim, A. Keerthika (2017):

51
This paper provides an overview of positive and negative impact of GST implementation on hotels and
restaurants in South Tamil Nadu for the study purpose a random sampling of 256 restaurants and hotels
has been taken.
In this research paper researchers described appropriate factors and identified variables such as
administrative ease, clarity for customers, time saving, improved quality, technological burden,
possibility of cost increased, and competition which is intends to focus on understanding the impact of
Goods and Services Tax on restaurant and hotel business.
The research also include that most of budgeted, luxury, 3-star and 4-star hotel owners agreed that
implementation of Goods and Services tax by Central government has strongly positive impact and
less negative impact on their hotels. This study shows that there are positive impact of Goods and
Services Tax on hotel and restaurant industry in South Tamil Nadu.
Bharati Sharma and et.al (2018):

Important tax assessment framework for café industry contrasting VAT and GST and investigating the
effect on buyer and eatery proprietors. The examination presumes that GST is important framework for
both eatery proprietors and customers, improving the fundamental portion of buyer by decreasing the
taxation rate. It will straightforwardly affect on the productivity of entrepreneur as decreased expense
draw in more clients and will expand the market development of café industry additionally the GDP of
Indian Economy.
Faizanbhai A.Saeeda (2019):

This paper gives a rundown of effect of GST on different parts of eateries and lodging organizations,
The examination received example study utilizing factors like deals, benefit and purchasing by the
eateries and so forth. The examination presumes that GST influences positive on offers of inns and
cafés and on the obtaining by lodgings and eateries it influences positive to unbiased and just if there
should be an occurrence of eatery the benefits stay consistent.
Shana and Rohit bhat (2018):

Analyzed issues of GST on lodging industry the investigation objective was to inspect the
discernments towards GST among buyers based on populace extent and the examination dependent on
test study. The examination finds and reasons that the age bunch till 30 yrs in the area were not having
clear comprehension on the framework than the above age gatherings. Not many of the clients have the
52
issue in installment of extravagance charge. The execution of GST had diminished the installment of
different charges at each phase of business movement and perceived as one assessment.
CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA
Analysis is a process of organizing and synthesizing data in such a way that research questions can be
answered and hypothesis tested. The term analysis refers to the computation of certain resources along
with searching for patterns of relationship that exists among data groups.
Analysis of data in a general way involves a number of closely related operations, which are
performed. With the source of summarizing the collected data, organizing these in such a manner that
they answer the research questions
In this chapter. The data collected were systemically processed, tabulated and made suitable for
analysis and interpretations, it was a study on Impact of GST on Hotel industry among customers and
owners in Thane City through data collected by questionnaire. The results obtained were classified,
tabulated and the following analysis were performed in fulfilling the objectives of the study.
53
1. Age wise analysis
Table: 4.1 Age group of the respondents
Age group of Respondents Percentage

respondents
15-25 85 85%
26-40 10 10%
41-60 5 5%
60 and above Nil Nil
Source: By Primary data
Chart 4.1. Age group of the respondents
90
80
70
60
50
40
30
20
10
0
15-25 26-40 41-60 60 and above
Age between 15-25 Age between 26-40 Age between 41-60
54
Source: By Primary data
Interpretation:
The above table represents age wise analysis maximum response were from the age group of
15-25. There after maximum response where from age group 25-35. This shows us that there is a good
Awareness of GST implemented on Hotels and food business among the consumers
2. Gender Wise Analysis
Table: 4.2 Gender of the respondents
Gender Frequency Percentage
Female 65 65%
Male 35 35%
Prefer not to say Nil Nil
Source: By Primary Data

Chart 4.2. Gender of the respondents

Interpretation:
Table represent total female respondents are 65% out of 100 respondents. While total male
55
respondents
Gender
are 35% out
of 100
respondents.
We can say
that female
have more
knowledge
regarding the
GST
Male Female Other

implementation on the hotel industry as compared to males.
3 Occupation wise analysis
Table 4.3. Occupation wise Classification
Occupation Respondents Percentage (%)
Salaried 36 36.26%
Employee
Business 3 3.06%
Student 60 59.68%
Retired 1 1
56
Occupati on
10% - 25% 26% - 50% 51% & above
0 0 0
0.3626 0.0306 0.5968 0.01
0 0
S al ar i ed Em p l o y ee B u si n ess S t u d en t R e ti r e d

Interpretation:
This table indicated that majority of the respondents belongs to the student category i.e.
59.68% While 37.26% of the respondents are from salaried employee category. 3.06% of the
respondents are businessmen and 1% from retired persons. Thus we can say that students and salaried
employees have more knowledge regarding the GST implementation on the hotel industry.
4 Are you aware about GST?

Table 4.4. Shows awareness among the respondents about GST
Awareness Respondents Percentage
57
Yes 92 92.65%
No 8 7.35%
Chart 4.4. Awareness about GST
Awareness about GST
Yes No
Interpretation:
The above table shows about the awareness among the respondents about GST 92.65% of the
respondents are aware about GST, 7.35% of the total respondents are not aware about GST. This
indicates that there is more awareness about GST among the respondents.
58
5 Are you aware about GST is levied on hotel bill?
Table 4.5. Shows awareness about GST is levied on hotel bill among the respondents.
Yes 87 87.71%
No 12 12.29%

Chart 4.5. Awareness about GST is levied on hotel bill.
Awareness about GST levied on hotel bill
Yes No
Interpretation:
The above table shows about the awareness among the respondents about GST implementation
87.71% of the respondents are aware about GST, 12.29% of the total respondents are not aware about
GST.
59
6. Do you know the percentage of GST applicable on hotels and restaurant?
Table 4.6. Shows the awareness about how much GST is applicable on hotel and restaurant.
Yes 74 74.02%
No 25 24.98%
Chart 4.6. Awareness about how much GST is applicable on hotel and restaurant
Awareness about GST percentage applicable on hotel and

restaurant
Yes No
60
Interpretation:
The above pie chart indicates 74.02% respondents knows the percentage of GST applicable on
hotel and restaurant, while 25.98% respondents doesn’t know the percentage applicable on hotel and
restaurant.
7. Do you think GST is beneficial to Hotel & Restaurant Industry?

Table 4.7. Shows how respondents feel about GST is beneficial to Hotel & Restaurant Industry?
Yes 66 69.67%
No 33 30.33%
Chart 4.7. GST is beneficial to Hotel & Restaurant Industry
GST is beneficial to hotel and restaurant industry
Yes No
61
Interpretation:
The above pie chart shows that 66.67% respondents are aware about GST is beneficial to Hotel
& Restaurant Industry, 33.33% of the total respondents are not aware about GST is beneficial to Hotel
& Restaurant Industry, This indicates that there is more awareness about GST is beneficial to hotel &
Restaurant industry
8. How often you prefer to visit hotels or restaurant?
Table 4.8. Shows prefer to visit hotels or restaurant?

Mode of Respondents Percentage (%)
Payment
Daily 0 0
Weekly 16 16.29%
Monthly 52 52.38%
Quarterly 31 31.33%
Chart 4.8. Prefer to visit hotels or restaurant.
62
Prefer to Visit Hotel and Restaurants
0.6
0.5
0.4
0.3
0.2
0.1
0
Daily Weekly Monthly Quartely
10% 20% 30% 40% 50% 60%

Interpretation:
The above table indicates about how often you prefer to visit hotels and restaurant, 52.38% of the
total 100 respondents prefer to visit monthly. While 31.33% respondents prefer to visit Quarterly, rest
of the 16.29% respondents prefer to visit weekly. Thus more people prefer to visit restaurant and hotels
on monthly.
9. After implementation of GST did you avoid to visit hotel and restaurant?
Table 4.9. Shows implementation of GST among respondents avoid to visit hotel and restaurant.
Use Respondents Percentage (%)

Agree 20 20.22%
Neutral 50 50.79%
Disagree 30 29.98%
63
Chart 4.9. After implementation of GST Respondents avoid to visit hotel and restaurant?
After GST respondents visit to hotel and restaurant
Agree Neutral Disagree

Interpretation:
The above table indicates about After implementation of GST 50.79% respondents have Neutral
response, after that 29.98% respondents disagree rest of the 20.22% respondents were agree that after
implementation of GST avoid to visit hotel and restaurant.
10. Do you think GST is better substitute for VAT and service tax?
64
Table 4.10. Shows if respondents think GST is better substitute for VAT and service tax.
Awareness Respondents Percentage (%)

Yes 78 77.78%
No 22 22.22%
Chart 4.10. if respondents think GST is better substitute for VAT and service tax.
if respondats thinkGST is better substitute for VAT and

service tax
Yes No
Interpretation:
This pie chart indicates if respondents think GST is better substitute for VAT and service tax .
77.78% respondents think GST is better substitute for VAT and service tax. 22.22% of the total
respondents think GST is not better substitute for VAT and service tax. This indicates that there are
more respondents who think GST is better substitute for VAT and service tax
65
11. Do you think GST is affecting in negative way on hotel and restaurant industry?
Table 4.11. Shows if GST is affecting in negative way on hotel and restaurant industry?
Awareness Respondents Percentage (%)

Yes 29 29.79%
No 71 71.21%
11. Chart 4.11. if GST is affecting in negative way on hotel and restaurant industry?
GST affecting in negative way on hotel & restaurant indus-

try
Yes No

Interpretation:
66
This pie chart indicates if GST is affecting in negative way on hotel and restaurant industry from
respondents point of view. 21.79% respondents think GST is affecting in negative way while
remaining 79.21% of the total respondents are thinks that GST is not affecting in negative way. This
indicates more respondents believe that GST is not affecting in negative way on hotel and restaurant
industry
12. Do you think after implementation of GST time taken to prepare bills is much
less as compared to earlier?
Table 4.12. Shows the consumers point of view towards bill preparing time after
GST implementation.
Use Respondents Percentage (%)

Agree 51 50.79%
Disagree 44 44.44%
Neutral 5 4.76%
Chart 4.12. Changes in bill preparing time after GST implementation
67
Changes in bill preparing time after GST im-
plimentation
Agree
Disagree
Neutral
Interpretation:
This pie chart indicates about changes in bill preparation time after GST implementation. Here
the 50.79% respondents thinks that after GST implementation time taken to prepare bills is less, while
44.44% respondents disagree to the statement. Followed that 4.76% respondents have neutral reaction
to the statement. This indicates that there is more response about bill preparing time being less after
GST implementation.
13. How much restaurant in Thane has GST on the services?
Table 4.13. Shows the percentage of restaurant in Thane has GST on the services.
68
% Restaurant Respondents Percentage (%)
in Thane
10% - 30% 32 32.38%
40% - 60% 47 46.98%
60% - 80% 11 11.11%
80% & above 10 9.52%
Chart 4.13. Percentage of Restaurant in Thane has GST on the services.
Percentage of Restaurant in Thane has

GST on the servies
80% & above
60% - 80%
40% - 60%
10% -30%
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
80% 70% 60% 50% 40% 30% 20% 10%

Interpretation:
The above table indicates that 32.38% respondents thinks that 10-30% restaurant in Thane has
GST on their services. While 46.98% thinks that 40-60% restaurant in Thane has GST on their
services. 11.11% respondents thinks that 60-80% restaurant in Thane has GST on their services. Rest
of the 9.52% respondents thinks that 80% & above restaurant in Thane has GST on their services.
69
14. Do you think hotel staff is finding processing of GST easier than VAT and service tax?
Table 4.14. Shows the response about hotel staff finding processing of GST easier than VAT &
service tax.
Response Respondents Percentage (%)

Yes 78 77.78%
No 22 22.22%
Chart 4.14. Hotel staff finding GST easier than VAT and service tax.
gst easier than vat and service tax

No
Yes
Interpretation:
70
This pie chart indicates about if hotel staff is finding GST easier than VAT and service tax.
Here is the 77.78% respondents feel hotel staff find GST than VAT and service tax, while 22.22%
don’t agree with statement. This indicates that more people think GST is easier than VAT and service
tax.
15. Is your customer response is favorable toward GST?

Table 4.15. Shows the Customers response on GST.
Customers Respondents Percentage (%)

Response
Good 39 38.57%
Moderate 50 50.32%
Not Good 11 11.11%
Customer response on GST

0.6
0.5
0.4 0
0.3
0.5032
0.2 0.3857
0.1 0
0.1111
0 0 0 0 0
Good Moderate Not Good
10% 20% 30% 40% 50% 60% & above
71
Interpretation:
The above table indicates about the customer response on GST. 50.32% of the total respondents
have moderate response. Followed that 38.57% customers have Good response on GST. 11.11%
customers has not good response on GST.
16. From where you know about GST applicable to hotel?
Table 4.16. Shows how respondents got know about GST applicable to hotel.
Getting Respondents Percentage (%)

Information
Social Media 30 30.33%
Television 33 33.33%
Newspaper 16 15.87%
Friends 17 17.40%
Other 3 3.06%
Chart 4.16. Shows of getting information about GST applicable to hotel.
72
Getting Information
Other 0 0.0306 0
Friends 0 0.174 0
Newspaper 0 0.1587 0
Television 0 0.3333
Social Media 0 0.3033
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35

0% 10% 20% 30% 40%

Interpretation:
The above table gives the information about where did the respondents get information about
GST applicable to hotel. 30.33% of the total respondents have heard about GST applicable to hotel
from social media, 33.33% from Television, 17.40% from friends, 15.87% from Newspapers and
3.06% from other sources.
17. Do you think there should be any changes in the GST regarding hotel industry?
Table 4.17. Shows if there is any changes in the GST regarding hotel industry.
Changes Respondents Percentage

wants in (%)
GST
Yes 60 60%
No 40 40%
73
Chart 4.17. Shows if there is any changes in the GST regarding hotel industry.
Changes in GST regarding hotel industry
Yes No

Interpretation:
The above table shows that 60% of the respondents doesn’t want any changes in the GST.
While 40% of the respondents want to change in the GST regarding hotel industry. That change was
most of the respondent wants reduce the GST rate, and also some of the respondent want there is no
GST on food services.
18.Do you think GST is extremely difficult to understand?

Table 4.18. Shows if GST is extremely difficult to understand
74
Customer Respondents Percentage
response (%)
Yes 32 32%
No 68 68%
Chart 4.16.Shows if GST is extremely difficult to understand
GST is difficult to understand
Yes No

Interpretation:
The above table shows 32% respondents find GST is extremely difficult to understand. While
68% of total respondents doesn’t find it difficult.it shows there is good understanding among
respondents about GST.
75
19. Which type of GST is applicable in Thane City’s Hotel?
Table 4.19. Shows type of GST is applicable in Thane City’s Hotel.
GST Respondents Percentage (%)
CGST 20 20.22%
IGST 16 16.29%
SGST 10 9.52%
CGST & SGST 54 53.97%

Chart 4.19. Shows type of GST is applicable in Thane City’s Hotel.
Types of GST
CGST &
SGST
SGST
IGST
CGST
0 0.1 0.2 0.3 0.4 0.5 0.6
50% & above 40% 30% 20% 10%

Interpretation:
76
The above table shows that which type of GST is applicable in Thane city’s hotel. CGST &
SGST applicable to Thane city’s hotel. 53.97% respondents give right answer. But also most of the
respondents not aware about which type of GST applicable on hotel & restaurant bill.
CHAPTER 5
FINDINGS AND CONCLUSION
5.1. Findings
The analysis of the data collected from the respondents reveals the following summary of facts and
findings:
 The analysis reveals that the majority of the respondents are female (65.5%) the reason for the low
proportion of male (35.50%).
 It is found that the majority of the respondents (85.25%) using e-payment comes under the age group of
15-25 years.
 The occupational status of the respondents reveals that the majority (59.68%) of the respondents were
students.
 The most of the respondents (92.65%) are aware about GST. Further it is found that (7%) of the
respondents do not aware about GST.
 Most of the respondents (74.2%) are aware about percentage of GST applicable on hotel bill. Further it
is found that (24.98%) are not aware about GST.
 Most of the respondents (66.67%) GST is beneficial to hotel and restaurant industry.
Further it is found that (33.33%) of the respondents do not think GST is beneficial to hotel and
restaurant industry.
 Most of the respondents (52.38%) people visit monthly to the hotels & restaurants. Further it is found
that (31.33%) customers visit Quarterly to hotels & restaurants, followed that (16.29%) customers visit
weekly to hotels & restaurants.
 Most of the respondents (50.79%) Neutral response, (30.98%) disagree rest of the (20.22%)
respondents were agree that after implementation of GST avoid to visit hotel and restaurant.
77
 Most of the respondents (77.78%) think GST is a better substitute for VAT and service tax,while
(22.22%) of respondents thinks it is not.
 (29.79%) respondents thinks GST is affecting hotel and restaurant industry in negative way while
(71.21%) of respondents think it is not affecting I negative way
5.2. Conclusion:
Here, the researcher concluded that more respondents were from the age group of 15-25 and
there were more female respondents compared to male respondents. The respondents were well
educated. Most of the respondents were under graduates. The survey included most of the student
respondents. Many of the respondents are aware about GST. Peoples have known about GST applied
on Hotel industry, but most of the customers feel GST is burden on Customers. There is an impact of
GST on hotel industry. The introduction of GST rates in hotels was initially met with resistance from
the hoteliers. However after the revised rates was implemented in Nov 15, 2017, majority of the
hoteliers have expressed faith in the system. The restaurant industry was burdened with multiple
taxation. Now this duality of tax is removed It also helps in improving the financial management. The
customers are provided with clear picture of taxes they pay for the service consumed in hotels. The
study found that there is a significant positive impact of GST on hotel industry. Hence, it is concluded
offered by the hotels, provides lower tax rate and precise and easily understandable bill for the
customers. These benefits increase the consumer consumption of hotels which in turn create more
employment opportunities in hotel industry.
78
SUGGESTIONS
 People should be made more aware about GST.
 Customer slab rate policy have to taken initiative by the government of India to cut the income level
differences among the low middle-class and low income group.
 As the hotel comprising of Non A/C compartments, the hotel have to fix a moderate rate of GST as is
suits the income needs of low-middle class and low income people.
 In order to make a required amount of GST revenue to the government from the goods and services
purchased, there is no need to collect luxury tax as the GST rates in high and moderate restaurants are
inclusive of luxury tax. Therefore it benefits to pay extra pay for tax by the customers as well as it
restricts the tax revenue to the government.
 The allowances on GST rates in small-sized and moderate hotels as it encourages the low-income and
middle class people.
 In point GST in hotel, especially for the alcoholic products like liquor should be taxed at the highest
slab rate compared to the current 18% GST rate on A/C restaurants.
 Most of the people suggested GST should not be applied on the food.
79
BIBLIOGRAPHY
Reference Books
 Datey, V. (2018). GST Input Tax Credit
 Haldia, C.A.(2019). GST made easy: Answer to all your queries on GST.
 Salim, C.M. (2017) GST on services
Journals
1) Renuka R(2018) “Impact of GST on tourism and hospitality sector”
2) Aswathy Krishna(2018) “A study on GST and its effect on hotel industry”
3) A DASH (May-2017) “Positive and Negative Impact of GST on Indian Economy”, International
journal of management and applied science, ISSN: 2394-7926 Volume-3, Issue-5,
4) Deo, A. (2017). Goods & Service Tax – Impact analysis & Road ahead. IBMRD’s Journal of
Management & Research, 6.
5) Saeeda F.A, “A Study of Impact of Goods and Services on Selected Hotel and Restaurant Business in
Anand and Nadiad Cities”, Aug-2018
80
6) Abraham, A, & Dr. Mathew, T. (2019) A Study on the Impact of Goods and Services Tax Reform on
Hotels in Kerala. International Journal of Management Studies,6(1), 54-61
7) Panwar, D & Patra, S. (2019). Impact of Goods and Service Tax on the Restaurants and Food Service
Businesses in India. International Journal of Applied Business and Economic Research, 15(23), 203-
213
8) Akshay R. Rakhunde, Dr. Priti Rai (2019). Effect of GST in the Hotel Industry(Nagpur) International
Journal of Scientific Research in Engineering and Management ,3(10), 1-7
Websites
 www.paisabazaar.com
 https://cleartax.in/s/impact-of-gst-hospitality-industry
 www.adityabirlacapital.com
 www.bajajfinserv.in
 https://en.wikipedia.org/wiki/Goods-and -services-tax-(India)
 https://www.jcreview.com
 https://www.posist.com
ANNEXURE
Q.1. Name _____

81
Q. 2. Age
o 15-25
o 25-35
o 35-45
o 45-60
o 60 and above
Q.3. Gender
o Female
o Male
o Prefer not to say
Q.4. Occupation
oSalaried Employee
oBusiness
oStudent
o Retired
Q.5. Are you aware about GST?

oYes
oNo
Q.6. Are you aware about percentage of GST is levied on your hotel bill?
oYes
oNo
Q.7. Do you know the percentage of GST applied on hotel and restaurant bill?
o Yes
o No
82
Q.8. Did GST is beneficial for the hotel & restaurant industry?
o Yes
o No
Q.9. How often you prefer to visit hotels or restaurant?

o Yes
o No
Q.10.Because of GST did you avoid to visit hotel and restaurant?
o Agree
oNeutral
oDisagree
Q11 Do you think GST id better substitute for VAT and service tax??
o Yes
o No
Q.12.Do you think GST is affecting in negative way on hotel and restaurant industry?
o Yes
o No
Q.13. Do you think after implementation of GST time taken to prepare bill is much less as compared to
earlier. ?
o Agree
o Neutral
o Disagree
Q.14.How much restaurant in thane has GST on the services?

o 10% - 30%
o 40% - 60%
o 60% - 80%
o 80% & above
83
Q.15. Do you think hotel staff id finding processing of GST easier than VAT and service tax?
o Yes
o No
Q.16. Is your customer response is favorable towards GST?

o Good
o Moderate
o Not Good
Q.17.From where you know about GST applicable to hotel?
o Social Media
oNewspaper
oFriends/ Family
oTelevision
oOther
Q.18.do you think there should be any changes in the GST regarding the hotel industry? If (Yes)
suggest the changes below, else write (No)
Ans :________________________
Q.19.Do you think GST is extremely difficult to understand?

o Yes
o No
Q.20.Which type of GST is applicable in Thane city’s hotel?
o CGST
o IGST
o SGST
o CGST & SGST
84
85

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UNIVERSITY OF MUMBAI

UNDER THE FACULTY OF COMMERCE

UNDER THE FACULTY OF COMMERCE

Signature of Coordinator Signature of External Guide

DATE OF SUBMISSION Ms. Sakshi Vijay Bavkar

Certified by: Prof. Ashish Mulay

Sakshi Vijay Bavkar

TABLE OF THE CONTENT

1.2. Pre gst information

1.3. Post gst information

1.4. Pros of GST Information

1.5. Features of GST

1.6. Advantages of GST towards

1.8. Dual GST

1.9. Features of Dual Model

1.10. Gst registration process

1.11.GST on food services

1.12. GST on food items

1.13. Impact of GST on food

1.14 gst collection

1.15. Significant of Research

1.16. Analyses of the impact of gst

1.18. Food and Restaurant Industry

2.2. Objectives of the study

2.3. Hypothesis of the study

2.4. Scope of the study

2.5. Limitation of the study

2.6 . Research methodology

3. Review of literature 51-55

3.1. Review of research papers

4. DATA ANALYSIS AND 56-75

5. FINDINGS AND CONCLUSION 76-77

Sr.No Particulars Page No.

1. Table 4.1. Age group of the respondents 56

7. Table 4.7.Shows GST is beneficial to hotel and 62

9. Table 4.9. Shows after implementation of GST 64

10. Table 4.10. Shows if GST is better substitute for VAT 65

11. Table 4.11. Shows if GST is affecting in negative way on 66

12. Table 4.12. Shows changes in bill preparing time after 67

16. Table 4.16. Shows how respondents got information 71

19. Table 4.19. Shows the Type of GST applicable in Thane 74

1.1. Introduction Of GST :

Figure No 01: GST Structure

It is a comprehensive, multistage, destination-based tax comprehensive because it has subsumed

Figure No 2: Indirect Taxes Pertaining to the Hotel Industry

1.2. Pre GST:

1.3 Post GST :

1.4 Pros of GST:

1.4.2 Clarity for Consumers

1.4.3 Improved Quality of Service

1.4.4 Availability of Input Tax

1.5 Features of GST:

1.5.3. GST Composition Scheme

1.5.4. Four-Tier Tax Structure

1.5.5 Consumption Based Tax

1.5.6. No Tax On Tax

1.6 Advantages of GST Towards Hotel & Restaurant

1.6.2 Uniformity Tax Rates & Structures/Development of Common National Market

1.6.3 Removal of cascading effect

1.6.6 Reduction of cost of services

1.6.7 Benefit to Smaller Hotels:

Figure No 03: Advantages of GST

1.7 Disadvantages of GST

1.7.2 Online Tax Regime