Arthshastra Indian Journal of Economics & Research

Open Access Open Access  Restricted Access Subscription Access

Impact of GST on the Sales of BSE-Listed Hotel and Tourism Companies


Affiliations
1 Research Scholar, Department of Commerce, Maharshi Dayanand University, Rohtak - 124 001, Haryana, India
2 Assistant Professor, Department of Commerce, Maharshi Dayanand University, Rohtak - 124 001, Haryana, India
3 Assistant Professor, Government College Dubaldhan, Jhajjar - 124 156, Haryana, India

   Subscribe/Renew Journal


Purpose : The purpose of this study was to find out whether the Goods and Services Tax caused a considerable difference in the net sales of hotel and tourism companies listed on the Bombay Stock Exchange individually and of the industry as a whole.

Methodology : The independent variable used in this study is the Goods and Services Tax, and the dependent variable is the net sales of hotel and tourism companies. We selected the 34 hotels and tourism companies bearing the Bombay Stock Exchange scrip code, and data regarding the scrip code of companies and their net sales were collected from Prowess IQ. We used the technique of independent and dependent t-tests to complete this study.

Findings : The analysis of the study showed that the net sales of six companies among the selected 34 companies of the study and the net sales of the industry as a whole were significantly affected by the implementation of the Goods and Services Tax.

Practical Implications : This study will benefit businessmen, government policymakers, and stock market investors and guide them in the direction of their investment in this industry.

Originality : Unlike prior research, this research focused on how the net sales of hotel and tourism companies reacted to the enactment of the Goods and Services Tax in India.


Keywords

GST (Goods and Services Tax), hotel and tourism industry, VAT (Value Added Tax), cascading effect, indirect taxation

JEL Classification : H25, H71, K34, L83, L32

Paper Submission Date : February 10, 2023 ; Paper sent back for Revision : February 20, 2023 ; Paper Acceptance Date : February 25, 2023

User
Subscription Login to verify subscription
Notifications
Font Size

  • Anushuya, & Narwal, K. P. (2014). The existing commodity sales tax system and the proposed Indian GST: An analysis using Mclure’s ideal sales tax system. Arthshastra Indian Journal of Economics & Research, 3(2), 12–19. https://doi.org/10.17010/aijer/2014/v3i2/55970

  • Basumatary, J. (2022). Effects of tax revenue and capital expenditure on economic growth: A case study of the Union Territory of Puducherry, India. Arthshastra Indian Journal of Economics & Research, 11(2), 8–21. https://doi.org/10.17010/aijer/2022/v11i2/172209

  • Bhalla, N., Kaur, I., & Sharma, R. K. (2022). Examining the effect of tax reform determinants, firms’ characteristics and demographic factors on the financial performance of small and micro enterprises. Sustainability, 14(14), 8270. https://doi.org/10.3390/su14148270

  • Dhar, K., & Khandelwal, U. (2022). Impact of Goods and Services Tax on supply chain management. Business Perspectives and Research, 10(3), 379–395. https://doi.org/10.1177/22785337211015403

  • Garg, Y., & Anand, N. (2019). Impact of GST on the exports of carpets & floorings industry in India. International Journal of Recent Technology and Engineering (IJRTE), 8(2), 1990–1994. https://doi.org/10.35940/ijrte.B2038.078219

  • George, R., & Reddy, Y. V. (2015). Corporate taxes in Goa: An analysis. Arthshastra Indian Journal of Economics & Research, 4(2), 47–55. https://doi.org/10.17010/aijer/2015/v4i2/65547

  • Goodchild, M., Munish, V. G., Sinha, P., Tullu, F. T., & Paul, J. (2022). Revisiting the tax treatment of bidis in India. Tobacco Control, 31(3), 432–437. https://doi.org/10.1136/tobaccocontrol2020-056056

  • John, R. M., & Dauchy, E. (2021). Trends in affordability of tobacco products before and after the transition to GST in India. Tobacco Control, 30(2), 155–159. https://doi.org/10.1136/tobaccocontrol-2019-055525

  • John, R. M., Dauchy, E., & Goodchild, M. (2019). Estimated impact of the GST on tobacco products in India. Tobacco Control, 28(5), 506–512. https://doi.org/10.1136/tobaccocontrol2018-054479

  • John, R. M., Tullu, F. T., & Gupta, R. (2022). Price elasticity and affordability of aerated or sugarsweetened beverages in India: Implications for taxation. BMC Public Health, 22(1), 1372. https://doi.org/10.1186/s12889-022-13736-2

  • Khoja, I. A., & Khan, N. A. (2020). Goods and services tax, cascading, and revenue performance: Analyzing Indian commodity taxation market. Journal of Public Affairs, 20(3), e2109. https://doi.org/10.1002/pa.2109

  • Kumar, M., Barve, A., & Yadav, D. K. (2019). Analysis of barriers in implementation of Goods and Service Tax (GST) in India using interpretive structural modelling (ISM) approach. Journal of Revenue and Pricing Management, 18, 355–366. https://doi.org/10.1057/s41272-019-00202-9

  • Madathil, J. C., & Ashitha, T. (2019). Before and after GST : Impact in CPI (Consumer Price Index) of India. International Journal of Research and Analytical Reviews, 6(2), 167–186.

  • Maheshwari, T., & Mani, M. (2022). Benefits of Goods and Services Tax implementation in India: An analytical hierarchy process approach. Journal of Public Affairs, 22(3), e2578. https://doi.org/10.1002/pa.2578

  • Mallick, H. (2021). Do governance quality and ICT infrastructure influence the tax revenue mobilisation? An empirical analysis for India. Economic Change and Restructuring, 54, 371–415. https://doi.org/10.1007/s10644-020-09282-9

  • Mishra, A. K., Rath, B. N., & Dash, A. K. (2020). Does the Indian financial market nosedive because of the COVID-19 outbreak, in comparison to after demonetisation and the GST? Emerging Markets Finance and Trade, 56(10), 2162–2180. https://doi.org/10.1080/1540496X.2020.1785425

  • Mour, D. K., & Paul, T. (2021). A perception study of taxable persons on Goods and Services Tax in the Guwahati City of Assam. Arthshastra Indian Journal of Economics & Research, 10(1), 27–40. https://doi.org/10.17010/aijer/2021/v10i1/159884

  • Mukherjee, S. (2020). Goods and Services Tax efficiency across Indian states: Panel stochastic frontier analysis. Indian Economic Review, 55, 225–251. https://doi.org/10.1007/s41775-020-00097-z

  • Ojha, R., & Vrat, P. (2019). Implications of Goods and Services Tax reform on the Make in India initiative: A system dynamics perspective. Systems Research and Behavioral Science, 36(4), 551–563. https://doi.org/10.1002/sres.2570

  • Paliwal, U. L., Saxena, N. K., & Pandey, A. (2019). Analyzing the impact of GST on tax revenue in India: The tax buoyancy approach. International Journal of Economics and Business Administration, 7(4), 514–523. https://doi.org/10.35808/ijeba/364

  • Sahoo, A. P., & Nayak, Y. D. (2021). Impact of GST on hotel industry - A study in Bhubaneswar City in Odisha. International Journal of Innovative Research in Engineering & Management (IJIREM), 8(3), 8–11. https://doi.org/10.21276/ijirem.2021.8.3.1

  • Sharma, B., Arora, R., & Sharma, G. (2022). Food Industry: Experiencing positive impact after goods and service tax implementation. Materials Today: Proceedings, 52(Part 3), 1726–1732. https://doi.org/10.1016/j.matpr.2021.11.341

  • Singhal, N., Goyal, S., Kumari, S., Nagar, S., & Tyagi, A. (2022). Implication of Goods and Services Tax (GST) implementation in India on foreign trade. Finance: Theory and Practice, 26(3), 241–251. https://doi.org/10.26794/2587-5671-2022-26-3-241-251

  • Solanki, K. R. (2021). A study of financial statement analysis of selected automobile companies in India with special reference to Goods and Services Tax. Vidhyayana - An International Multidisciplinary Peer-Reviewed E-Journal, 7(2), 2454–8596. https://j.vidhyayanaejournal.org/index.php/journal/article/view/99


Abstract Views: 504

PDF Views: 0




  • Impact of GST on the Sales of BSE-Listed Hotel and Tourism Companies

Abstract Views: 504  |  PDF Views: 0

Authors

Shivani Gupta
Research Scholar, Department of Commerce, Maharshi Dayanand University, Rohtak - 124 001, Haryana, India
Divya Saini
Research Scholar, Department of Commerce, Maharshi Dayanand University, Rohtak - 124 001, Haryana, India
Priti Sharma
Assistant Professor, Department of Commerce, Maharshi Dayanand University, Rohtak - 124 001, Haryana, India
Karambir Gulia
Assistant Professor, Government College Dubaldhan, Jhajjar - 124 156, Haryana, India

Abstract


Purpose : The purpose of this study was to find out whether the Goods and Services Tax caused a considerable difference in the net sales of hotel and tourism companies listed on the Bombay Stock Exchange individually and of the industry as a whole.

Methodology : The independent variable used in this study is the Goods and Services Tax, and the dependent variable is the net sales of hotel and tourism companies. We selected the 34 hotels and tourism companies bearing the Bombay Stock Exchange scrip code, and data regarding the scrip code of companies and their net sales were collected from Prowess IQ. We used the technique of independent and dependent t-tests to complete this study.

Findings : The analysis of the study showed that the net sales of six companies among the selected 34 companies of the study and the net sales of the industry as a whole were significantly affected by the implementation of the Goods and Services Tax.

Practical Implications : This study will benefit businessmen, government policymakers, and stock market investors and guide them in the direction of their investment in this industry.

Originality : Unlike prior research, this research focused on how the net sales of hotel and tourism companies reacted to the enactment of the Goods and Services Tax in India.


Keywords


GST (Goods and Services Tax), hotel and tourism industry, VAT (Value Added Tax), cascading effect, indirect taxation

JEL Classification : H25, H71, K34, L83, L32

Paper Submission Date : February 10, 2023 ; Paper sent back for Revision : February 20, 2023 ; Paper Acceptance Date : February 25, 2023


References





DOI: https://doi.org/10.17010/aijer%2F2023%2Fv12i1%2F172843