Food Industry: Experiencing positive impact after goods and service tax implementation

Abstract

Indian indirect taxes imposed on the sale or purchase of goods and services have been unified under the Goods and Services Tax (GST). The purpose of this research is to investigate the effect of the Goods and Services Tax on the food sector in Hyderabad, mainly on hotels and restaurants. The impact of the Goods and Services Tax on many aspects of the restaurant industry has been investigated. The related hypothesis was tested using the T-test, which revealed that the GST had a beneficial effect on restaurant sales and profits. As well as looking at purchase invoices and restaurant proprietors, the effect of the GST is also investigated. It was found that restaurant operators would have to spend less on raw materials as a consequence of the introduction of the Goods and Services Tax GST. Long considered a win–win scenario for both customers and business owners, the Goods and Services Tax on food services and restaurants continues to remain so. The government's choice to impose a Goods and Services Tax on food services and restaurants proven to be sound.