Travel Gets Cheaper with GST Cuts from Sept 22

The Voice of Chandigarh :

In a major boost to India’s travel and tourism industry, the government has announced sweeping GST reductions effective September 22, 2025.

Air Travel: Economy class GST slashed from 12% to 5%, while business class drops from 18% to 12%, making flights significantly more affordable.

Hotels: Rooms priced between ₹1,000 and ₹7,500/night will now attract only 5% GST (earlier 12%). Budget stays under ₹1,000 remain tax-free, while premium hotels above ₹7,500 continue at 18%.

Dining: Eating out becomes lighter on the pocket with a flat 5% GST, down from the earlier 12–18%.

Industry experts say the move will spur festive season travel, boost domestic tourism, and give a big push to mid-market hotels and airlines. However, concerns remain over the removal of Input Tax Credit (ITC) in some segments.

The reforms are part of the government’s landmark GST 2.0 revamp, aimed at simplifying taxes and making India a more attractive travel destination.