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GST Council slashes GST on restaurants, hotels and air travel from September 22, 2025, making dining out, hotel stays and flights cheaper.
Air travel gets a significant correction.
Dining out, holidaying and flying will soon put less strain on wallets after the GST Council’s sweeping tax overhaul brought down rates on restaurants, hotels and air travel. The changes, effective September 22, 2025, come just ahead of the festive and wedding season, when spending on food and travel peaks.
What Has Changed For Those Eating Out?
Meals at restaurants will now attract 5% GST, down from the previous 12–18% depending on category. The cut means family dinners, festive outings and casual dining will all become more affordable. The move could bring back more footfall to restaurants that had seen demand dip under higher taxes.
Read more: From Restaurants To Flights, Here’s How Much You Could Save With GST Cuts
What Changes For Those Seeking Hotel Stays?
The Council has rationalised hotel tariffs, providing relief to travellers as rooms priced under ₹1,000/night remain GST-free, rooms between ₹1,000 and ₹7,500/night will now be taxed at 12%, instead of 18% and premium hotels with tariffs above ₹7,500 will continue to attract 18%. The shift is expected to ease costs for middle-class families booking trips for festivals, weddings and vacations.
Will Your Flights Become Cheaper?
Yes, air travel also gets a significant correction as economy class tickets will attract just 5% GST, down from 12% and business class tickets will be taxed at 12%, reduced from 18%. The move will make flying more accessible, particularly for festive domestic travel, while offering some relief to business travellers.
Read more: Festive Cheer: GST Cuts Promise A Lighter Shopping Basket, Just As PM Modi Promised
Together, these cuts are aimed at boosting consumption in the services sector while providing direct savings to families. With the festive season approaching, the relief is expected to lift consumer sentiment and drive demand. Tourism and hospitality, among the hardest hit during the pandemic, could see a much-needed rebound due to the GST cuts.
- Location :
Delhi, India, India
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