Arthshastra Indian Journal of Economics & Research

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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

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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

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

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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


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