Transition From Traditional Taxation To GST: A Study Of The Hospitality Industry In Navi Mumbai

Abstract

India has long been celebrated for its rich culinary heritage and diverse regional flavors, making it a global hub for food lovers. However, in recent decades, there has been a noticeable transformation in eating habits. With the rise in disposable incomes, a growing trend toward dining out, the influence of tourism, evolving lifestyles, and increasingly hectic schedules, people are stepping away from traditional food practices. This change has led to a boom in the food service industry, making it a magnet for entrepreneurs and investors alike.

The sector has evolved significantly, introducing innovative business models such as cloud kitchens, food trucks, specialty snack centers, and themed dining spaces. Additionally, premium restaurants offering international cuisines are gaining traction among urban consumers with global tastes. As a result, the food and hospitality industry has witnessed rapid growth and continues to be a focal point for business opportunities and customer interest.

The introduction of the Goods and Services Tax (GST) has reshaped the taxation landscape in India by replacing a complex web of state and central taxes with a unified, destination-based system. GST aims to simplify compliance, reduce the cascading effect of multiple taxes, and ensure a fairer ecosystem for businesses operating across states.

This doctoral research focuses on evaluating the influence of GST on the food and hospitality segment, specifically in the Navi Mumbai region. Through a structured survey involving 1,044 participants, findings reveal a significant link between the implementation of GST and the perceptions held by both restaurant owners and their customers. The study highlights how taxation policies can shape business dynamics, consumer behavior, and overall satisfaction in this rapidly growing industry.