Business

Demonetisation, GST likely to impact wedding season business by 10-15%: Assocham

Jan Dhan Accounts

New Delhi, Oct 23: The industry chamber Assocham on Monday said demonetisation and newly implemented Goods and Service Tax (GST), may impact the business of upcoming wedding season, staring November, by 10-15 per cent.

Wedding services including marriage garden/marriage hall booking, tent booking, confectionery services and photography are anticipated  to get impacted.

Currently, Indian wedding industry is about Rs 1 trillion and is rising at 25 to 30 per cent annually. The estimated cost of a wedding with no expenses spared could be between Rs 3 lakh to Rs 8 crore.

“It is being estimated that the average cost of many wedding services like shopping, tent booking, food services, etc., is higher due to GST. The GST rate on most of these services is from 18 to 28 per cent. Before GST, most of the wedding service businesses like tent services, confectionery booking, etc., were using unregistered bills on which they didn’t have to pay any tax,” the chamber stated.

Apart from this, Assocham said destination wedding will not witness much adverse impact of the GST and Note Ban, because it is already a very costly affair which mainly lures foreigners, NRIs, higher class people for exotic weddings at beaches, royal palaces and adventurous places.

Wefornews Bureau 

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