Tourism in Garhwal Under the Goods and Services Tax: A Study from Mussoorie

This paper measures the impact of the Goods and Services Tax (GST) on the tourism industry. The study analyses various travel subsectors in terms of GST rates, their effects, and GST’s role in shaping tourist behaviour, such as spending patterns and the choice of services. Mussoorie was selected through convenience sampling due to its year-round tourism. Data from ten 5-star hotels and 60 tourists (30 male, 30 female) were collected via interviews, bills, and secondary sources. Data analysis was facilitated through the use of descriptive statistics and content analysis. The findings indicate that GST streamlined tax structures, reduced evasion, and facilitated travel, though it posed compliance challenges due to the seasonality of tourism. The study highlights GST’s positive impact on tax simplification, compliance, and transparency. Challenges persist for luxury hotels and smaller enterprises, emphasising the importance of Input Tax Credit (ITC) in reducing the tax burden and formalising unorganised players. Consumer perceptions, particularly among specific age groups, provide insights for refining tax reform communication and implementation strategies