{"id":10242,"date":"2025-09-04T08:46:08","date_gmt":"2025-09-04T08:46:08","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/04\/travel-gets-affordable-gst-on-budget-hotels-and-economy-flights-slashed-business-news\/"},"modified":"2025-09-04T08:46:08","modified_gmt":"2025-09-04T08:46:08","slug":"travel-gets-affordable-gst-on-budget-hotels-and-economy-flights-slashed-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/04\/travel-gets-affordable-gst-on-budget-hotels-and-economy-flights-slashed-business-news\/","title":{"rendered":"Travel Gets Affordable: GST On Budget Hotels And Economy Flights Slashed | Business News"},"content":{"rendered":"


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GST Council led by Nirmala Sitharaman cuts GST on hotel rooms under Rs 7500 to 5 percent from September 22, 2025, aiming to boost tourism and discretionary spending.<\/h2>\n
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In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. <\/p>\n<\/figure>\n

The GST Council, led by Finance Minister Nirmala Sitharaman, has decided to promote tourism and discretionary spending by reducing the GST on hotel rooms under Rs 7500 to 5 per cent without ITC (Input Tax Credit) from the earlier 12 per cent GST with ITC. <\/span><\/p>\n

It will directly make hotel rooms under Rs 7500 cheaper, promoting tourism and discretionary income. The revised rates will come into effect from September 22, 2025.\u00a0<\/span><\/p>\n

The <\/span>rationalisation<\/span> of GST slabs is a welcome move that will act as a stimulus to the Indian economy by boosting discretionary income and <\/span>fuelling<\/span> consumption across sectors. \u201cFor travel and tourism, the cut in GST on hotel rooms priced below <\/span>\u20b97,500 will make stays more affordable for a large share of Indian <\/span>travellers<\/span>, reinforcing demand in the domestic market.” Rajesh <\/span>Magow<\/span>, Co-Founder and Group CEO, MakeMyTrip.<\/span><\/p>\n

Hotel rooms priced under Rs 1,000 per night will remain exempt from GST, while premium hotels charging above Rs 7,500 will continue to attract 18%. This change is expected to ease costs for a wide range of travelers.<\/p>\n

Air travel will also see relief<\/strong><\/p>\n

Economy class tickets will now carry 5% GST, down from 12%, and business class fares will be taxed at 12% instead of 18%. The move aims to reduce travel expenses for both leisure and business passengers, potentially boosting demand for flights.<\/p>\n

In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a \u201chistoric Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.<\/p>\n

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Varun Yadav<\/a><\/p>\n

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> Travel Gets Affordable: GST On Budget Hotels And Economy Flights Slashed<\/span><\/div>\n
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Last Updated:September 04, 2025, 14:15 IST GST Council led by Nirmala Sitharaman cuts GST on hotel rooms under Rs 7500 to 5 percent from September 22, 2025, aiming to boost tourism and discretionary spending. In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods…<\/p>\n","protected":false},"author":1,"featured_media":10243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-10242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=10242"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10243"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=10242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=10242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=10242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}