GST Rate Reduction Bolsters India's Travel Sector by Making Stays More Affordable

Key Highlights of the GST Reform

The GST on hotel rooms priced at INR 7,500 per day or less will now be reduced to 5%, down from 12%, as decided by the 56th GST Council meeting led by Finance Minister Nirmala Sitharaman.

Nikhil Sharma, Managing Director & COO of Radisson Hotel Group, stated: “We appreciate the GST Council’s progressive step… This move reflects a deep understanding of industry dynamics and traveller aspirations.”
Dr. Sanjay Sethi, CEO of Chalet Hotels, mentioned: “The recent GST announcements are progressive and in line with the larger vision of nation building.”
Rajesh Magow, CEO of MakeMyTrip, affirmed that these reforms will enhance affordability for travelers.

K Syama Raju, President of FHRAI stated: “Reducing the tax on rooms up to INR 7,500 to 5% will make Indian hotels more attractive.”
Neha Kapoor, GM at Hyatt Place Gurgaon, expressed optimism about improved occupancy levels.

Dinesh Yadav, Founder of Fine Acers, indicated expectations of increased occupancy and tourism as a result of these changes.

These GST reforms are timely, coinciding with the upcoming festive seasons, and are expected to significantly stimulate domestic tourism.