12 To 5% GST Cuts Set To Boost Indian Tour & Travel Industry

(MENAFN- KNN India) New Delhi, Sep 22 (KNN) The new Goods and Services Tax (GST) rationalisation measures are aimed at making tourism and hospitality more affordable, promoting public transport, and providing direct support to artisans and cultural industries.

Under the new framework, GST on hotel rooms priced below Rs 7,500 per day has been reduced from 12 percent to 5 percent without input tax credit, making accommodation more accessible for middle-class and budget travellers.

Analysts said the move is likely to stimulate demand for mid-segment hotels, homestays, and guesthouses, boosting weekend travel, pilgrimage circuits, and heritage tourism.

In the transport sector, GST on buses with seating capacity of more than 10 passengers has been cut from 28 percent to 18 percent.

Officials expect this to lower ticket fares, particularly in semi-urban and rural areas, encourage the use of shared mobility over private vehicles, and support fleet modernisation for operators, schools, and tour providers.

Artisans and cultural industries will also benefit, with GST on art and cultural goods - including statues, statuettes, prints, ornamental articles, stone art ware, and stone inlay work - reduced from 12 percent to 5 percent.

The government emphasised that this measure will provide economic support to traditional craftsmen while promoting India's cultural heritage globally.

The reforms come amid a strong rebound in India's tourism sector, with Foreign Tourist Arrivals (FTAs) rising from 15.27 lakh in 2021 to 99.52 lakh in 2024.

Officials said the measures are expected to lower travel costs, create jobs in hospitality and transport, and enhance the economic viability of traditional arts, while promoting sustainable mobility and cultural preservation.

(KNN Bureau)

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