GST Reform Slashes Hotel Tariffs, Boosts Indian Hospitality

GST on hotel rooms costing up to Rs 7,500 has been reduced from 12% to 5%, effective September 22. This move is expected to boost domestic tourism by making hotels more affordable, stimulating economic growth, and enhancing India’s competitiveness as a global travel destination.

In a decisive move to boost the Indian hospitality sector, the government has reduced GST on hotel rooms priced up to Rs 7,500 from 12% to 5%, effective September 22. This strategic shift is anticipated to make accommodations more affordable for a broad base of Indian travelers.

Industry leaders have expressed optimism about the reform's potential to stimulate domestic tourism, with Rajesh Magow of MakeMyTrip stating that it will enhance stays for Indian tourists, thereby reinforcing demand. The GST Council's decision aligns with the broader objective of positioning India as a high-potential tourism hub.

The reduction is also expected to fortify the sector's role in economic growth, job creation, and global competitiveness. Hospitality industry executives, including Radisson's Nikhil Sharma, emphasize that the lower tax burden will unlock new opportunities for travel and leisure, contributing significantly to India's GDP.

(With inputs from agencies.)