{"id":651,"date":"2025-09-15T13:19:45","date_gmt":"2025-09-15T13:19:45","guid":{"rendered":"https:\/\/konkanwood.com\/kok\/?p=651"},"modified":"2025-09-15T13:19:46","modified_gmt":"2025-09-15T13:19:46","slug":"travel-gets-more-affordable-gst-cuts-on-budget-hotels-announced","status":"publish","type":"post","link":"https:\/\/konkanwood.com\/konkani\/travel-gets-more-affordable-gst-cuts-on-budget-hotels-announced\/","title":{"rendered":"Travel Gets More Affordable &#8211; GST Cuts on Budget Hotels Announced."},"content":{"rendered":"\n<p>The GST Council, led by Finance Minister Nirmala Sitharaman, has announced a reduction of GST on hotel rooms priced under \u20b97,500 from 12% with Input Tax Credit (ITC) to 5% without ITC, effective from September 22, 2025. This move aims to make budget and mid-tier hotel stays more affordable, boost domestic tourism, and increase discretionary spending by lowering the tax burden on a large segment of travelers.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"819\" height=\"441\" src=\"https:\/\/konkanwood.com\/kok\/wp-content\/uploads\/2025\/09\/hotel_sea_beach-min.jpg\" alt=\"\" class=\"wp-image-652\" style=\"width:734px;height:auto\" srcset=\"https:\/\/konkanwood.com\/konkani\/wp-content\/uploads\/2025\/09\/hotel_sea_beach-min.jpg 819w, https:\/\/konkanwood.com\/konkani\/wp-content\/uploads\/2025\/09\/hotel_sea_beach-min-300x162.jpg 300w, https:\/\/konkanwood.com\/konkani\/wp-content\/uploads\/2025\/09\/hotel_sea_beach-min-768x414.jpg 768w, https:\/\/konkanwood.com\/konkani\/wp-content\/uploads\/2025\/09\/hotel_sea_beach-min-750x404.jpg 750w\" sizes=\"(max-width: 819px) 100vw, 819px\" \/><\/figure><\/div>\n\n\n<p>Key details of the new GST rates on hotel rooms starting September 22, 2025:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rooms priced up to \u20b91,000: 0% GST (unchanged)<\/li>\n\n\n\n<li>Rooms priced between \u20b91,001 and \u20b97,500:\u00a05% GST without ITC\u00a0(previously 12% with ITC)<\/li>\n\n\n\n<li>Rooms priced above \u20b97,500: 18% GST (unchanged)<\/li>\n<\/ul>\n\n\n\n<p>This rationalization primarily benefits budget and mid-market hotels, making travel stays cheaper for many Indians. For example, a \u20b96,000 hotel bill will now attract only \u20b9300 GST compared to \u20b9720 earlier, encouraging more domestic tourism and consumption in the hospitality sector .On air travel, economy class fares will continue to attract 5% GST, supporting affordability, while GST on premium class airfare has increased from 12% to 18%, which has drawn criticism from airline industry bodies .Industry experts, including Rajesh Magow , Co-Founder and CEO of MakeMyTrip, welcomed the decision, noting it will stimulate the economy by increasing discretionary income and reinforcing demand in domestic travel and hospitality markets .The GST Council emphasized that the removal of ITC (Input Tax Credit) on the reduced 5% GST for hotel rooms under \u20b97,500 is balanced by the overall tax relief and simplification offered to the segment. The changes were part of broader GST reforms effective from late September 2025, aimed at easing tax burdens for consumers and businesses alike.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The GST Council, led by Finance Minister Nirmala Sitharaman, has announced a reduction of GST on hotel rooms priced under \u20b97,500 from 12% with Input Tax Credit (ITC) to 5% without ITC, effective from September 22, 2025. This move aims to make budget and mid-tier hotel stays more affordable, boost domestic tourism, and increase discretionary [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard"},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_review":[],"enable_review":"","type":"","name":"","summary":"","brand":"","sku":"","good":[],"bad":[],"score_override":"","override_value":"","rating":[],"price":[],"jnews_override_counter":[],"jnews_post_split":[],"footnotes":""},"categories":[9],"tags":[],"class_list":["post-651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Travel Gets More Affordable - GST Cuts on Budget Hotels Announced. - Konkanwood<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/konkanwood.com\/konkani\/travel-gets-more-affordable-gst-cuts-on-budget-hotels-announced\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Travel Gets More Affordable - GST Cuts on Budget Hotels Announced. - Konkanwood\" \/>\n<meta property=\"og:description\" content=\"The GST Council, led by Finance Minister Nirmala Sitharaman, has announced a reduction of GST on hotel rooms priced under \u20b97,500 from 12% with Input Tax Credit (ITC) to 5% without ITC, effective from September 22, 2025. 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