A STUDY OF IMPACT OF GST ON THE BUSINESS OF HOTEL INDUSTRY IN MAHARASHTRA

An indirect tax is a tax collected by an intermediary agents, from the person who bears the ultimate economic burden of the tax (such as the consumer). Further the intermediary forwards the tax proceeds to government and files the return. The Central Excise duty , Customs Duty, VAT and Service Tax were the major Indirect Taxes in India till 2017. One of the key reforms in the Indian Taxation System is the introduction of Goods and Services Tax(GST). It aims at eliminating the effect of double taxation. GST is a tax on value added by the Tax Payer, charged on the production, distribution and consumption of goods and services. It is commonly contrasted with Value Added Tax, shortly known as VAT, which is an indirect tax levied at each stage of manufacture and distribution of goods on the incremental value. As VAT emerged as a reformation to the old sales tax to remove the cascading effect, GST was adopted over the VAT, which subsumed other taxes such as excise duty, surcharge, cess , entry tax and so forth, which liberalized the taxation system in India. The attempt of the study is to investigate the impact of GST on hospitality sector.