ROLE OF GOODS AND SERVICE TAX (GST) IN SUSTAINABLE DEVELOPMENT OF HOTEL AND TOURISM INDUSTRY
Abstract
The Goods and Services Tax (GST) has brought significant changes to the taxation system
in India and has played an important role in the development of the hotel and tourism
industry. Introduced on 1 July 2017, GST replaced multiple indirect taxes such as service tax,
value-added tax (VAT), luxury tax, and entertainment tax with a single unified tax structure.
This reform has simplified the tax system, improved transparency, and reduced the
complexity of compliance for businesses operating in the hospitality and tourism sectors.
GST has contributed to the sustainable development of the hotel and tourism industry by
reducing cascading taxes and enabling businesses to claim Input Tax Credit (ITC), which
helps lower operational costs and improve profitability. The unified tax structure has also
enhanced ease of doing business, encouraged investment, and promoted the growth of the
organized sector. Additionally, the digital nature of GST has improved record-keeping,
accountability, and efficiency within the industry.
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