GST, demonetisation may impact wedding market: ASSOCHAM

The upcoming wedding season starting in November may be impacted by 10-15 per cent, particularly wedding services like marriage garden/marriage hall booking, tent booking, confectionery services, photography and more, reveals industry chamber ASSOCHAM. The GST rate on most of these services has risen from 18 to 28 per cent. Destination wedding or the wedding tourism sector in India which accounts for less than 10 per cent share in the overall industry is not likely to face much adverse impact of GST and demonetisation as it is already a costly affair which mainly lures foreigners, NRIs, rich and famous people for weddings at beaches and royal palaces, says the ASSOCHAM paper.

All footwear above Rs.500 is taxed at a whopping 18 per cent. Tax on gold and diamond jewellery has increased from 1.6 per cent to 3 per cent. The booking for a five-star hotel will cost 28 per cent extra in the form of GST. Also, event management service, will have to pay an additional 18 per cent GST on the cost. GST on marriage garden and hall booking is also 18 per cent, same as most other wedding services.

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