• Source:JND
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GST Reforms: The GST reform brought cheers for people from almost all sections of society. The visit to a tourist place in India is going to be cheaper as hotel rooms with tariffs up to Rs 7,500 per day are set to become cheaper. According to the GST council, these hotel rooms will attract a lower goods and services tax (GST) rate of 5 per cent, without input tax credit (ITC), from September 22.

Boost To Tourism, Hospitality

The surprise tax cut for hoteliers is seen as a move to boost the tourism and hospitality industry. Currently, hotel rooms with a daily tariff of up to Rs 7,500 attract 12 per cent GST with input tax credit. Now, the government cleared sweeping changes to the indirect tax regime, approving an overhaul of rates by limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navaratri.

What Hoteliers Have To Say

Rajesh Magow, Co-Founder and Group CEO, MakeMyTrip, said, "The move will act as a stimulus to the Indian economy by boosting discretionary income and fuelling consumption across sectors." He asserted for travel and tourism, the cut in GST on hotel rooms priced below Rs 7,500 will make stays more affordable for a large share of Indian travellers, reinforcing demand in the domestic market.

Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group, said the GST Council's tax cut is a progressive step, describing it as a timely and welcome reform that will make quality stays more accessible to a wider base of Indian travellers and strengthen the country's positioning as a high-potential tourism hub.

"By reducing the tax burden on mid-scale and upper mid-scale hotels, the government has unlocked new opportunities for stronger domestic travel, weekend leisure breaks, and business mobility -- factors that are critical to the hospitality sector's growth. This move reflects a deep understanding of industry dynamics and traveller aspirations, and we are confident it will accelerate momentum across the hospitality landscape while reinforcing India's ambition of becoming one of the world's leading travel destinations," he stated.

Ankit Pathak, Chief Finance Officer, Ebix Travels, said by bringing hotel tariffs of up to Rs 7,500 under a 5 per cent GST slab, the Council has created a strong incentive for travellers to explore more destinations, especially during the upcoming festive and wedding season when demand peaks. At the same time, retaining a lower 5 per cent GST on economy air tickets ensures affordability for mass travellers, which is vital for sustaining the momentum in domestic tourism.

(With PTI Inputs)