JOURNAL OF MANAGEMENT & ENTREPRENEURSHIP ISSN : 2229-5348 UGC Care Group 1 Journal Vol. 16, No.4 (I), October - December 2022 111 AN IMPACT OF GST WITH REFERENCE TO SELECTED BUSINESS ARENAS: REAL ESTATE AND HOTEL INDUSTRY Akash R. Naik Lecturer, Dept. of Studies in Commerce, Shantveer Arts and Commerce Collage Babaleshwar. Vishwanath Bhanuse Full-Time Guest Faculty, Dept. of Studies in Commerce, Rani Channamma University, PG Center Jamkhandi-01 Abstract: 122 nd amendment to the constitution has been made during 2014. The same was passed and given assent by the then president of India. The act was implemented in 2017. The GST changed almost all the indirect tax system in India. Hotel industry is one of the major industries in India. The contribution of service industry to the growth of economy is more than rest two sectors. Obviously the hotel industry comes under territory sector. Under GST both goods as well as services will be covered. So, the GST definitely impacts on hotel and real estate business. The real estate business has slight contribution to the nations GDP. GST having different types and rates makes annoy among users. In real estate sectors large deals are happened, so, huge amount of GST will be levied by the concerning authority. Understanding of GST tax regime and tax rates are quite difficult for the users. This paper intended to chalk out the impact of GST on real estate business and hotel industry. Keyword: Goods and Service Tax, Tax rates on hotel services, influence of GST on Real Estate and Hotel Industry. Introduction: Goods and Services Tax (GST) or the 122 nd Amendment Bill, 2014 is soon to become a reality, with implementation in effect from July 1, 2017. The proposed GST is likely to change the whole scenario of current indirect tax system in India. It is considered as biggest ever tax reform since 1947. The idea was initially proposed by the NDA government in the year 2000, when an empowered committee to design GST model was formed. Beginning that time, a number of debates have arisen relating to various aspects of GST implementation. In the budget of 2006 – 07, the then Finance Minister, P. Chidambaram, made an announcement of 1st April 2010 to be the target date for GST implementation, that was not met. Consequently, in the year 2014 The Constitution (122nd Amendment) Bill was finally passed in the Lok Sabha on 8th August 2016 and in the Rajya Sabha on 3rd August 2016. President Pranab Mukherjee gave his concurrence on 8th September 2016, post the ratification by the States and finally will be put into practice on July 1, 2017. Currently, in India complicated indirect tax system is followed with different types and rates of taxes imposed by union and states separately. GST will unify all the indirect taxes under an umbrella and will create a smooth national market. Experts say that GST will help the economy to grow in more efficient manner by improving the tax collection as it will disrupt all the tax barriers between states and integrate country via single tax rate. GST was first introduced by France in 1954 and now it is followed by 140 countries. Most of the countries followed unified GST while some countries like Brazil, Canada follow a dual GST system where tax is imposed by central and state both. In India also dual system of GST is proposed including CGST and SGST and we are following Canadian module. Literature Review: CA Madhukar & CA Ravi Kumar Somani: Seamless flow of credits in GST regime all the duties/taxes (except stamp duty) will get subsumed, therefore the builders should be able to avail the input tax credit of all its procurement of goods/ services except for few restrictions placed in the Model law. And Broadened Tax base many construction contracts which are exempted in the current regime (especially the government contracts) could be brought under the tax net in the GST regime.