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

Features, GST and its Implications

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 the expansion of the structured market by drying out the arbitrage available to the unstructured market. It will make it easier to avail and utilise input credit, without any cascading impact and minimal blockage of funds, leading to administrative efficiencies once the system is stabilised. It should also encourage businesses to invest and increase capacity, thereby helping the country not only increase employment but also widen the tax base and increase tax revenues. Such overall economic uplift would only support greater demand for the hospitality sector.
With GST, there are clear guidelines on how each industry needs to manage their accounts and file returns which will require businesses to become technologically adept. This may increase the technology and compliance costs for smaller brands. The industry has sought clarity from the government viz the applicability of GST on the applied vs. the declared tariff and on composite services (for e.g. Extra bed, late check out, etc.)

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