The document discusses Goods and Services Tax (GST) and its impact on the hotel industry in India. It provides an overview of the current tax structure for hotels, which includes various state and central taxes that result in an overall tax rate of 20-27%. The document outlines the proposed GST structure of 5%, 12%, 18%, and 28% tax slabs. While the 5% tax slab for food is beneficial, there is concern about the 18% tax rate for hotel services being higher than competitor countries. The hotel industry demands a lower 6-8% tax rate under GST. Overall, GST could simplify taxes for hotels but the impact will depend on the final tax rate applied to the industry.
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the Producer’s point and Service provider’s point up to the retailer level.
The Goods and Services Tax is being billed as the significant next step in indirect tax reform since VAT was successfully introduced all over India.
However, in introducing GST, there are some objections from some State governments.
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the Producer’s point and Service provider’s point up to the retailer level.
The Goods and Services Tax is being billed as the significant next step in indirect tax reform since VAT was successfully introduced all over India.
However, in introducing GST, there are some objections from some State governments.
As everyone know that our country has recently taken a bold step to eliminate the all indirect taxes levied at different level by different government under the leadership of our energetic PM.
Therefore I have the view that Industry will take time to get settle down since yet some of the part of country engaged into strikes/ deadlocks.
Therefore to overcome that situation we have a detail & summarized presentation on the subject for beginners and every efforts have been put in to make it easy to understand.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
this presentation consists of the information abou TDS ans TCS and their implications under GST. It also includes the differnce between both the terms.
GST In India An Overview and Impact.
Types of Taxes Covered in CGST, SGST, IGST
Benefits for Government and Customer
GDP growth rate
Many more to find in PPT
As everyone know that our country has recently taken a bold step to eliminate the all indirect taxes levied at different level by different government under the leadership of our energetic PM.
Therefore I have the view that Industry will take time to get settle down since yet some of the part of country engaged into strikes/ deadlocks.
Therefore to overcome that situation we have a detail & summarized presentation on the subject for beginners and every efforts have been put in to make it easy to understand.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
this presentation consists of the information abou TDS ans TCS and their implications under GST. It also includes the differnce between both the terms.
GST In India An Overview and Impact.
Types of Taxes Covered in CGST, SGST, IGST
Benefits for Government and Customer
GDP growth rate
Many more to find in PPT
Impact of GST on entertainment industry and media sector Shashwat Tulsian
India's media and entertainment market which is the 5th largest in the world .GST will do more good than harm for the entertainment industry on the whole prots for multiplexes are likely to go up
GST in India - Impact Assessment & ImplementationNimish Goel
GST is proposed to be implemented in India from April 1, 2017 and it is important for companies to get an impact assessment done and understand the implications on their margins, cash flows, business processes and tax obligations. International Business Advisors (www.ibadvisors.co) is working with its clients to help transition to this new legislation.
KEY FEATURES OF THE BOOK • Highlights of changes in Revised Model GST Law for easy understanding • Constitutional Amendments and likely date of GST Implementation • GST - Need & Necessity, Overview and Model for India • Discussion/analysis on Revised Model GST Law along with its comparison with First Model GST Law • Analysis of meaning of the terms 'Supply','Goods' and 'Services' in GST. • Gist of documents, information, procedure, etc., required for migration of existing registrants in GST • Discussion on various domains - intra-state supply and inter-state supply of goods and/or services, principles of place of supply & time of supply, valuation of goods and/or services, GST ITC, taxable person, appeals and revision, offences and penalties, demand and recovery, GST rate, e-commerce operator, etc., along with transitional provisions. • Discussion on contentious issues under Revised Model GST Law which requires reconsideration • Discussion on flow of input tax credit in GST with illustrations and negative list for GST ITC • Discussion on Draft Rules and procedural aspect of GST- Registration, Payment, Invoice, Returns and Refund • Impact of GST on business and specifically on manufacturers, traders and service sectors and preparation required for smooth migration • Transitional issues under GST along with effective tools for planning. • Likely challenges ahead for GST implementation • Way forward and Procedural changes in GST • Contains complete Revised Model GST Law, ModeI IGST Law and Draft GST Compensation Law along with Draft Rules and Formats on Registration, Payment, Invoice, Returns and Refund as released by the Government
Important CA final chapter by CA Final classes in Mumbai.miamiamumbai
We have list of established CA Final classes in Mumbai who have a vision to provide excellent learning opportunity for students. Mia Mia expertise in listing the IPCC Classes in Mumbai. Students can check the list for CA Coaching in Mumbai and get the best information for their career.
Impact of government policies on taxation and cost of living for canadapaul young cpa, cga
Liberal, NDP and CPC taxation policies including analysis by major groups
1. Single
2. Single parent
3. Family
4. Seniors
*** includes taxation as well as household spending
Mistakes to avoid while e filing your income tax returnGirish Kodashettar
Here are few very useful tips for e-filing of Income Tax Return.
These are few frequently committed mistakes and should be avoided. Go through this slide show before filing your ITR or even if you have already done it. - www.hornmerchant.com
Goods and Services Tax - Input Tax Credit Eligibility
Basic Provisions. How can a taxpayer claim ITC what are the conditions and restrictions for claiming ITC under GST.
itelligence GST implementation
India is slated to adopt GST from Apr 1, 2017. Hence, businesses need to be technologically-ready
GST is a comprehensive indirect tax levied on Sale, Manufacture and Consumption of Goods and Services at the National level.
GST would apply to all goods other than crude Petroleum, Motor spirit, Diesel, Aviation Turbine fuel and Natural gas.
GST would apply to all services barring a few to be specified
Export and Direct taxes like Income Tax, Corporate Tax, Capital gains tax will not be affected by GST.
Imports will be subject to GST, but exports will be GST-exempt
Where the output is GST exempt, the GST paid on the input will be a cost to the business
We are aware that operating in several jurisdictions offers chances to save expenses and increase market share, but that doing business abroad is time-consuming and expensive due to the intricate rules. We have strong ties to our foreign affiliates overseas and are members of reputable international alliances. Our foreign affiliates have the technical know-how to guide you through the confusing web of national and international tax rules, including the Goods and Services Tax in India.
GST (Goods and Service Tax) is going to transform the fundamentals of doing business in India in terms of speed, ease and competitiveness.
The present Government is leaving no stone unturned to make it a reality from 1st April’2016. In all probability, GST Bill is expected to be passed in the Budget session of 2015.
In this backdrop, we thought of compiling the basic tenets of GST and it’s present status.
Hope you will find it useful.
Share among your professional colleagues and friends to spread the awareness.
Deloitte helps you to identify and work through the GST implications, to give you the satisfaction that your business’ future plans are GST optimized. See More : https://www2.deloitte.com/in/en/pages/tax/topics/goods-and-services-tax.html
An article on Role of Company Secretaries in GST Era was published in Souvenir of 43rd National Convention of Institute of Company Secretaries of India. Article was contributed by Team : Lex Bolster Global LLP.
This presentation is on GST (Goods and Services Tax), it is about the new taxation system implemented in India. I have tried to keep all information about GST India.
The biggest ever indirect tax reforms to be implemented ever since 1947 is the GST bill. Execution of this bill is expected to bring economic integration of the Indian economy. Among the group that is highly overwhelmed with the introduction of this form of tax are the start-ups and SME’s. Expectations are that the organizations will benefit the most out of the GST implementation.
Goods and services tax in nutshell ,possibility and problemsPrashant Arsul
It is a destination based tax on consumption of goods and services
It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.
only value addition will be taxed and burden of tax is to be borne by the final consumer
SAVIC belongs to a team of technocrats qualified in SAP S/4 HANA who draw their collective experience from hundred plus successful implementations globally in diverse industry verticals. SAVIC in value proposition represents the aggregate skill set of each team player, the pinnacle being 76 days go live with SAP best practices, 56 Days successful quick upgrade, 90 Days GO LIVE SAP ECC 6.0 EHP7 Retail Implementation, 99 Days GO LIVE of SAP S/4HANA 1610 RealEstate@SAVI Partner Qualified Solution- First in INDIA.
U.S. Gandhi Budget 2015 - 2016 AnalysisKunal Gandhi
Rarely has there been a budget as highly anticipated as this one.
Coming on the heels of the defeat of the ruling BJP in the recent Delhi elections, there were expectations that the original ‘Maximum governance, minimum government’ model would give place to a more populist agenda.
India Inc on the other hand expected improving the ease of doing business and a more rational tax regime.
While Corporate tax was lowered and Wealth tax was abolished, a major theme in the budget was creating a social security framework. Targeting a GDP growth rate of 8 – 8.5%, the budget plans to keep the deficit to within 3.9% of GDP by laying special emphasis on infrastructure development with a major spend budgeted on Road building.
All in all, though there were no big bang reforms, the budget 2015 was a good mix of Pragmatism and Populism. We are optimistic about growth and believe a lot more reforms are expected in the coming 3 years.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
1. We T a sfo o po ate values th ough E a li g Capa ilities
Setting GST Concern
HIGHLIGHTS /IMPACT/APPROACH
Setting GST Concern 1
2. Our Background
Our Presence
Services Offered
GST Highlights
GST Advantages
Way Forward to GST
How STAN can help
Contents
Vision: “Transform corporate values through Enabling Capabilities”
2
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
3. View of Our Head office Located at Mohali
Leading Assurance & Consulting organization well positioned to assist you in India, access to
over team of 400 persons, 75 professionals with substantial industry background and
experience. Our firm is having adequate client base spanning from multinationals, domestic
public and private sector.
We are available at 14 locations to provide PAN India access to our clients.
Detailed business profile on each business segments & activities can be shared on demand.
Our Background
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
3Setting GST Concern
4. Our Presence in India
Branches
Chandigarh
Bengaluru
Delhi
Ludhiana
Jammu
Allrightsreserved/Preliminary&Tentative
S.No Virtual Offices
1 Ahmedabad
2 Cochin
3 Hyderabad
4 Jaipur
5 Kolkata
6 Lucknow
7 Pune
8 Chennai
9 Mumbai
10 Indore
Vision: “Transform corporate values through Enabling Capabilities”
4Setting GST Concern
5. S. Tandon & Associates – Leading Chartered Accountants firm in India
Competent Synergies Pvt. Ltd.(15th Largest ITES company in India)
Competent Finman Pvt. Ltd -.37th Largest member of BSE, NSE)
Integrated Risk Insurance Brokers Ltd. (IRDA approved)
Stan Professionals Pvt Ltd – Leading Consulting Company in India
About our Group
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
5Setting GST Concern
6. Our Team
• We have Tax and Advisory professionals, STAN has the team working on GST across all key
sectors.
• Our Policy Advisory Group comprises a specialized team of Multi-disciplinary team of
professionals Constituting Chartered Accountants ,CFA, MBAs & Cost Accountants.
• STAN subject matter professionals in goods and service tax, accounting, supply chain,
project management, and IT with deep sector knowledge, provide an integrated service
offering to our clients.
Vision: “Transform corporate values through Enabling Capabilities”
6
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
7. Our Assurance Services
Management & Operational (Process review) Audit
Supply Chain Management (SCM) Process Audits
HR Risk containment Audit
Information Security (IS)/ITGS Audits
Forex Management Audit
Energy Audit
Project Capitalization Audits
Legal and Secretarial Audits
Costing systems Review/Audits
Revenue Assurance Audits
Vision: “Transform corporate values through Enabling Capabilities”
7
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
9. • GST introduced in 1991 by replacing federal Sales Tax.
Levy of GST ranging from 13% to 15% in case of
provinces and other at rate of 5%.
• Tax to GDP ratio first increased and then decreased
when rates we raised and then steady up down
• Vat has not been money machine for Canada.
• GST introduced in 1985 Peak rate of tax is 15%
• GST increased the tax to GDP ration,
• GST introduced as Constitutional bill in 2014.
• Rate of Taxes Concessional 12%,standard rate 17-18%,
Luxury rate 40%.
GST Global Outlook
31%
36%
New Zealand
34%
31%
CANADA
Australia
• GST introduced in 1999 Peak rate of tax is 10%.
• Tax to GDP ration in Australia increased after
implementing GDP.
29%
30%
11%
9%
• GST as VAT introduced in 1992 Initial rate of tax is 7%.
• Tax to GDP ration in increased after implementing GDP.
THAILAND
31+%
31 -%
Vision: “Transform corporate values through Enabling Capabilities”
9Setting GST Concern
Allrightsreserved/Preliminary&Tentative
10. GST is a consumption tax that is collected on sale of manufactured goods and services. Since it is
a consumption tax it is passed on until the last stage, wherein the customer bears the tax, just like excise duty
is imposed currently.
Broking firm Nomura estimates that the GST would drive up headline CPI inflation by 20-70 basis points in
the first year due to higher prices of electricity, clothing & footwear, health/medicine, and education after
accounting for input taxes and potential asymmetric pricing behavior,
However in the long term, lower tax and logistic costs, productivity gains and higher investments under
the GST should structurally reduce inflation.
As tax cascading disappears, the industry will move to the lagging regions because of lower costs and thus
bring these into the growth dynamics.
Stock market analysts are already zeroing in on stocks and sectors that will be positively impacted by the
implementation of this key tax reform.
As per estimates from the National Council of Applied Economic Research (NCAER), growth could increase
by 0.9% to 1.7%.
Preliminary results indicate that the growth in GDP can be between 2-2.5% with the implementation of a
well-designed GST. The increase in exports can be between 10-14%.
GST Impact on Indian Economy
Vision: “Transform corporate values through Enabling Capabilities”
10
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
11. Pre GST Tax Structure
IndirectTax
Central Tax
Excise
Service Tax
Custom
State Tax
VAT
Entry Tax, luxury tax,
Lottery Tax, etc.
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
11Setting GST Concern
12. Taxes Subsumed Under GST
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
12Setting GST Concern
13. Key Features of Ideal GST
Destination based Tax
Applies to all stages of the value chain
Zero rated Export of all goods and services
Seamless Credit
Minimum floor rates
No e ui e e t of C Fo
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
13Setting GST Concern
14. GST
Intra
State
CGST SGST
Inter
State
IGST
(CGST+SGST)
Credit Methodology Priority
CGST
CGST
IGST
SGST
SGST
IGST
IGST
IGST
CGST
SGST
Proposed GST Structure
Conceptual Framework
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
14Setting GST Concern
15. GST rates as per New Model GST Law
Allrightsreserved/Preliminary&Tentative
Intra
State
Taxable
Supply
Excise and
Service Tax will
be known as
CGST
Local VAT &
Other taxes will
be known as
SGST
Inter State
Taxable Supply
CST will be
replaced by
Integrated GST
(IGST)
Approx. Sum
Total of CGST
and SGST
Import From
Outside India
Custom Duty
In Place of CVD
and SAD, IGST
will be charged
14%+14
%=28%
14%
14%
14%
14%
Moreover, Sec 8 of GST(Compensation for loss of revenue )Bill, 2016 makes provision for cess leviable which would be non vatable.
Vision: “Transform corporate values through Enabling Capabilities”
15Setting GST Concern
16. GSTIN Code under GST
State PAN Entity Blank Check
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
State Codes
PAN
Entity Code for Business Verticals of entities with same
PAN in same State
Left blank for future use
Check Digit
Digit
1-2
Digit
3-12
Digit
13
Digit
14
Digit
15
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
16Setting GST Concern
17. The closing stock is held either in the form of raw materials, semi-finished goods, or finished goods,
and must be used or intended to be used for taxable supplies.
The benefit of such credit is passed on, by way of reduced prices, to the recipient. In current tax
regime, duty/tax is added as product cost since the Input Tax Credit is not allowed.
On transition to GST, ITC will be allowed, and this should naturally result in the reduction of base
cost, and subsequently reduced final price to customers.
In GST, you are eligible for Input Tax credit if you are a regular tax payer only. A taxable person
opting for composition levy under GST is not allowed to claim Input Tax credit.
You have invoices or any other prescribed duty/tax paying documents in respect of the closing stock
of inputs (including semi-finished goods and finished goods).
The date of invoices or any other prescribed duty / tax paying documents is within 12 months from
the date of transitioning to GST.
Eligibility conditions to avail Input Tax credit held in your closing stock
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
17Setting GST Concern
18. Special Provision ITC
Person newly applying for registration fails to apply for registration with 30 from the date which he becomes liable for registration
–ITC credit in respect of goods held in stock or contained in Finished 0r semi finished goods held in stock would not be available
Person liable to be registered as per Schedule V
• If “aggregate Turnover” exceeds Rs 20 Lacs
• In Special category States i.e. North Eastern States + Sikkim ,
J&K Himachal Pradesh & Uttarakhand if “Aggregate turnover”
exceeds Rs 10 Lacs
Every Supplier(Except)
• Supply of goods after completion of job work by registered job
worker be included in turnover of principal not job worker
Job Worker
Person registered under existing law shall be
required to be registered under GST Law
Every person liable for registration as per
schedule V -30 days from “Effective date”
Aggregate Turnover
Taxable +Non Taxable +
Exempt+ Export of
Goods & Services
Excl. GST Taxes
Incl. All supplies
whether own or behalf of
principal
Situation Effective date
Transfer /Succession Date of Transfer/
succession
Amalgamation/
demerger
ROC Certification
giving effect high Court
Order
Other Cases Date on which supply
exceeds threshold limit
Vision: “Transform corporate values through Enabling Capabilities”
18
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
19. Registration Under Schedule V
Registration
If Turnover Exceed
Mandatory
Irrespective Turnover
Person Making Inter State Supply
Casual Taxable Person
Reverse Charge
E-Commerce Operator
Non Resident
Persons required to deduct Tax @1%
Persons required to collect tax u/s 56
Person supplying goods on behalf of
other registered taxable persons
Input service Distributor
Person who supply goods & Services
other than branded services(through E
commerce Operator)
OIDAR Services
Notified Persons
Not Required
Person supplying
Exclusively goods/ services
which are not liable or
wholly exempt
Agriculturist
Vision: “Transform corporate values through Enabling Capabilities”
Allrightsreserved/Preliminary&Tentative
19Setting GST Concern
20. Decoding Impact of GST on Hotel Industry
from Model GST Law Perspective
• GST a good hope for
Hotel Industry
Impact
Allrightsreserved/Preliminary&Tentative
20Hotel Industry Impact
21. Current Scenario
Vision: “Transform corporate values through Enabling Capabilities”
Allrightsreserved/Preliminary&Tentative
21
Cascading Taxes
Diversified Taxes
F& B
•The hotel and tourism industry hit
various taxes across the channel by
value added tax (VAT) to Output service
tax
•Major taxes that can be clearly seen on
any receipt of hotel are VAT, luxury
taxes and service tax. The VAT
varies from state to state and lies
between 12-14.5%.
•Similarly, Luxury taxes depends on
the proportion of room tariff and
usually scales between 0-12 percent.
•Service taxes are the once that
fluctuates, it depends on the type of
service that has been rendered or
ordered. It is usually valued at 8.7%
of the total room tariff.
•Food rates vary from place to place
and so does it bill/tax.
•For food & beverage, 40% of the bill
attracts the service tax and it comes to
5.8 percent when considered on total
bill.
For booking in hotels for occasions like
marriages, ceremonies and meetings, an
abatement of 30% is given and the
effective service tax works out to 10.15% on
the total charges.
Bookings
Hotel Industry Impact
22. Proposed Scenario
Vision: “Transform corporate values through Enabling Capabilities”
Allrightsreserved/Preliminary&Tentative
22
Four tier structure of 5, 12, 18 and 28 per cent of which the service sector will
be taxed at 18 per cent.
The 5 per cent tax slab on food was proposed, which is a positive outcome of
subsumed taxes for hotels and restaurants.
However, the 18 per cent levy on services or room revenue in our case, compared
to our neighbouring countries which charge a Tourism tax between 4 to 7 per cent, rules
out fair competition.
Hotel Industry Impact
23. •
Vision: “Transform corporate values through Enabling Capabilities”
Allrightsreserved/Preliminary&Tentative
23
Federation Demands regarding Taxes
The Federation of Associations in Indian Tourism and Hospitality has pointed
out amendments to the draft Goods and Services Tax law that supports exception for
tourism and hospitality businesses, and put them under 6-8 per cent tax slab
just similar to other countries.
The federations has been in talks with the finance ministry and governments of
various states on the GST Law.
In addition to the proposed VAT and Luxury tax which currently have a set off in the
draft law, the federation’s other demands include a GST set-off which subsumes
inter state levies on transportation, state electricity cesses and liquor tax, and
making an exception for the sector in the classification of export services.
It has highlighted that most nations recognise tourism as a critical economic
driver and follow a Tourism Rate (TR) which is lower than 50% of the
Standard Rate (SR) on other sectors.
Hotel Industry Impact
24. Other Financial Impact
24
The hotel and tourism industry spend a lot of money on construction
and renovation. They have to move with the times in order to remain
competitive and attract customers. The money paid as taxes on the
construction activities cannot be used as input credit to set off the
taxes paid on the services offered by the hotels, restaurants, and
tourism industry.
The R&D cess which is applicable on technical know-how fees
and franchise agreements in the industry is likely to become a part
and parcel of GST. Thus simplify the taxation procedure for the hotel
and tourism industry.
The hotel Industry is hopeful that implementation of Goods &
Servies Taxes (GST) will impact it positively, but there is concern
about the possible high rate of GST for the industry. The industry is
awaiting clarity on the GST rate. The actual impact of GST on the
hotel industry will depend on the GST rate applicable to the
industry.
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
Hotel Industry Impact
25. Benefits
25Hotel Industry Impact
Under GST, the single largest advantage would be uniformity of tax rates and applicability of single rate, better utilization of
input credit and benefits to end user in terms of lower price thereby attracting more tourists and increase in GDP Numbers.
•5 per cent tax slab on food, which is a positive welcome outcome of subsumed taxes for hotels and restaurants.
•However, the 18 per cent levy on services or room revenue in our case, compared to our neighbouring countries which
charge a Tourism tax between 4 to 7 per cent, rules out fair competition
Excise, VAT and other taxes amount to upwards of 20% for the luxury sector. "If GST is estimated to be around 18%, it will be
positive for the sector .
•Entertainment, luxury and other service taxes in hospitality amount to more than 22%, compared with the proposed
18% under the GST regime. So GST should be positive for the sector
When the VAT, service tax, and luxury tax are combined the total impact goes up and lies between 20 to 27 per cent.
With the GST implementation, the multiple taxes would be replaced by one single tax, the rate of which is likely to be between 17
to 19 per cent. The hotel and tourism industry would benefit in the form of a lower tax rate which should help in attracting more
tourists to India. However, the luxury tax is not applicable on all transactions and the GST rate may be at par or higher in such cases.
The hotel industry would definitely prefer a lower GST rate between 10 to 15 percent.
Allrightsreserved/Preliminary&Tentative
27. CreatingAwareness
•Awareness
programs to
reach
stakeholders
•Stakeholders
to be kept
informed
about plan &
progress
implementatio
n.
ChangeAssistance
•Its Critical for
business
process
owners to
manage
attributed
change in GST
implementatio
n in daily
activities.
IntegrateProcesses
•Multiple
systems and
modules at
various stages
to be ready for
GST
•Systems/
applications to
be identified,
developed and
tested
thoroughly.
Key Considerations for EntityImplementationofGST
TimelyReadiness
•Organization
to ensure
timely
readiness for
GST
Implementatio
n
•Any delays
attracts
potential
reputational
risks.
•Critical to
remove
roadblocks
UnitingStakeholders
•Different
Stakeholders
different
interest.
•Common
grounds to be
identified
together
under
common
clause.
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
27Setting GST Concern
28. Increase in
the rate for
service sector
Non
availability of
CST
Credit(Credit
of IGST will be
Available)
Input service
Credit to
wholesalers
and retailers
Pruning of
Exemption
List
Availability of
credit on
opening stock
Credit on VAT
paid goods
available to
Service
provider
Saving on Non
payment of
Octroi, Entry
Tax, Luxury
Tax, etc.
Financial Impact
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
28Setting GST Concern
29. WiderImplicationofGST
Suppliers
Customers
Fin &
Admin
Human
Capital
Training
Legal
Sales
Strategies
Information
Systems
Compliance
• Sourcing from
Appropriate Vendors
• Maximizing tax credit
from best practices
• Appropriate Pricing
• Structuring of financing
• Identification of
Correct GST
Liability
• Cash flow Impact
• GST Compliances
• Other
Administrative
Tasks
• Trainingincl. workshopson
rolesand responsibilities
• Facilitating business
readiness
• GST impacts on
contracts
• GSTregistrations
• Taxcredittransitions
• Returnreporting
• Other statutory
compliances
• Impact on current
inventory
• Pricing Strategies
• Effect on Demand
• System Design changes
for GST compliance
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
29Setting GST Concern
30. Compliances
Reporting
of
accumulate
d credits
New
formats of
invoices,
waybills,
returns/cha
llans etc.
Rate
change
to be
implement
ed
Classificati
on of
goods and
services
Manner of
computatio
n and
payment
Periodical
Returns
Redesign
IT
Systems
Statutory
forms
–likely to be
discontinued
Migration of
registrations
- PAN based
GST Compliance Framework
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
30Setting GST Concern
31. With diverse clientele, our diverse
experience across multiple
segments of industryIndustry Focus
STAN Difference
Project Management
Capabilities
Technical Skills
Strong working relationship
and access with government
Departments
Have blend of Highly Qualified
team of professionals
Holistic suite of offering to
ensure smooth GST transition
Success fully concluded GST
impact assessment for clients
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
31Setting GST Concern
32. How STAN can Help in GST?
Feasibility
Studies
• GST Impact Analysis
on Business
• Advisor on additional
issued by authorities
IT & Systems
• Advising on
Accounting, billing
and invoicing systems
• Assisting IT
manual around
solutions wherever
required
Migration &
Compliance
• Migration of VAT to
GST
• Identifying
Additional Compliance
responsibilities
• Handling Legal
Compliances i.e returns
filing for you
• Assisting with
Registration across
country
Advisory
• Advising Implications
on various Provisions
• Delivering
comprehensive
approach towards
valuation of
bundles consisting of
services & Goods
• Providing VAT
implication guidance
for contractual
terms in future
Agreements
Allrightsreserved/Preliminary&Tentative
Allrightsreserved/Preliminary&Tentative
Vision: “Transform corporate values through Enabling Capabilities”
32Setting GST Concern
33. Our Major Credentials
Vision: “Transform corporate values through Enabling Capabilities”
33
Allrightsreserved/Preliminary&Tentative
Setting GST Concern
34. Allrightsreserved/Preliminary&Tentative
Let’s talk
For a deeper discussion of how this issue might affect your business,
please contact:
Tax & Regulatory Services – Indirect Taxes
Madan Chauhan Kapil Vohra Sambhav Jain
0172-5098288, Ext. 107 0172-5098288, Ext. 117 0172-5098288, Ext. 102
madan.chauhan@staindia.org Kapil.Vohra@staindia.org Sambhav.jain@stan.in
Vision: “Transform corporate values through Enabling Capabilities”
34
Allrightsreserved/Preliminary&Tentative
Setting GST Concern