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The Good, Bad and Confusing

A month after the GST regime was unrolled, we find out how the hospitality industry is coping with one of the world’s largest and most complex tax reforms By Vinita Bhatia One nation, one market, one tax – that was the underlying premise and promise on which Goods and Services Tax (GST) was structured. Sections of the business world were excited about the new tax regime that promised to unify the plethora o ...

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GST Insight – Shantha de Silva, Head of South West Asia, InterContinental Hotels Group

“We faced minor problems, as with any new initiative. There are certain aspects of the GST directive that are currently not clear regarding services at the hotels. Upgradation of a large part of the systems as well as informing our guests and educating them about the new tax structures on their existing bills was initially challenging. Public information on GST and guest facing communication from the author ...

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GST Insight – Adarsh Shetty, president, Indian Hotel and Restaurant Association (AHAR)

Our association is in favour of GST. In the long term, GST will lead to a more accurate accounting practice amongst restaurateurs, which in turn will facilitate in getting finance from bans for business development activities. We, however, feel that the restaurant segment was given a raw deal when it comes to the classification on the basis of non-airconditioned and airconditioned and liquor serving establi ...

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GST Insight – Rahul Pandit, MD & CEO, Ginger Hotels

At Ginger, we established a cross-functional team from finance, sales, procurement, operations and technology, which executed a smooth GST roll out pan-India. Our partners were informed to share invoices on or before 30th June. 2017 and our PMS system was GST compliant form 1st July, 2017. Incidentally, there was zero cost incurred in the implementation and system upgrade. In my opinion, GST should nudge th ...

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GST Insight – Nityanand Shetty, owner, Thyme Bistro

GST will bring tax discipline in all organisations. Lot of restaurant owners who probably didn’t have a good grip on their sales/purchase will now have tighter control over it, which will stop pilferages in any form. We attended a lot of GST seminars and discussions organised by AHAR and arranged for joint meetings with our CA and respective stake holders in our organisation. We always had good accounting p ...

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GST Insight – Rattan Keswani, deputy MD, The Lemon Tree Hotel Company

Our hotel chain faced a few operational issues after GST was rolled out from 1st July due to last minute changes, but it was well managed by our teams. According to me, the long term gain of GST rollout is that it will bring simplicity to the entire taxation process. I do not see any major change in the short term. However, companies will gain from input tax credit. One of the biggest challenges of GST is t ...

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GST Insight – Zorawar Kalra, Founder and MD, Massive Restaurants

The long term benefits is that it will bring simplicity and clarity to the tax structure, as diners will be able to know the exact amount of tax paid by them for a particular meal. Moreover, as everything under food is now covered under GST, which was earlier not covered under the VAT and sales tax structure, companies are able to take a larger input for the tax that they have to pay. However, I wish that l ...

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GST Insight – Vikas Chadha, ‎Executive Director and CFO at Berggruen Hotel

Being a mid-segment market player we believe that GST will ensure ease of processes going forward and do away with multiple tax regime. Clarity is still expected on the status of the earlier Luxury tax exemption for certain properties and we are representing to Tourism authorities for these hotels that earlier had exemptions for 10 years on Luxury tax. The new GST has not clarified the process of subsidy on ...

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GST Insight – Rishi Puri, VP, Lords Hotels & Resorts

“Businesses or enterprises hold MICE events in different regions because those regions may be their markets or they may have some strategic tie-ups there. To host MICE or related events becomes necessary for such enterprises to conduct their business without having to operate from that particular region. In not being able to receive an Input Tax Credit (ITC) under the GST will act as a deterrent in conducti ...

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GST Insight – Kamlesh Barot, past president of Federation of Hotel and Restaurant Associations of India (FHRAI) and director of Vie Hospitality

“The non-refund or non-receipt of input credit tax (ITC) for businesses holding MICE in states other than the ones they operate in is the biggest drawback of GST for hospitality. ITC is available if the entity arranging the MICE has their GST registered in the state where it is held and also unfortunately ITC on Integrated Goods & Services Tax (IGST) is not applicable for the hotel industry. Not receivi ...

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