IMPACT OF GST ON HOTEL INDUSTRY, TOURISM AND TRAVEL INDUSTRY

Abstract

The introduction of the Goods and Services Tax (GST) in India has brought significant changes to the taxation system by replacing multiple indirect taxes with a unified tax structure. The hotel, tourism, and travel industries are among the major sectors affected by the implementation of GST due to their strong contribution to the Indian economy and employment generation. This study examines the impact of GST on the hotel industry, tourism sector, and travel services in terms of pricing, tax structure, customer demand, operational efficiency, and overall business growth. The research highlights how GST has simplified the taxation process by eliminating cascading taxes and improving transparency in transactions. At the same time, varying GST rates on hotel tariffs, restaurant services, transport facilities, and tour packages have influenced consumer spending patterns and business profitability. The study also analyzes the advantages and challenges faced by hotels, travel agencies, tour operators, and tourists after GST implementation. Findings indicate that GST has contributed to better tax compliance and organized business practices, while higher tax slabs on luxury services have affected affordability and customer preferences. Overall, the study concludes that GST has had both positive and negative impacts on the hospitality and tourism sectors, with long-term benefits depending on policy reforms, industry adaptation, and effective tax management practices.