By Anubhav Maurya
Copyright republicworld
The Indian government has introduced major GST reforms that will have a mixed impact on travel, tourism, and luxury spending in the country.Effective from September 22, these changes aim to make domestic tourism more affordable while increasing taxes on luxury travel, balancing accessibility for most travellers with higher charges for the ultra-wealthy.Here’s what you need to know:Hotel stays under Rs 7,500 per day will now attract only 5% GST, down from 12%. This reduction is expected to make budget and mid-range accommodations more affordable for domestic and international travellers. With lower prices, weekend trips, pilgrimage circuits, heritage tourism, and eco-tourism are likely to see a boost.The change may also encourage investments in mid-segment hotels, homestays, and guesthouses, creating jobs and improving infrastructure in tourist hotspots.Buses and minibuses with a seating capacity of 10 or more will now attract 18% GST instead of 28%. This cut lowers costs for fleet operators, including schools, corporates, tour providers, and state transport services. For travellers, it could translate into cheaper ticket fares, especially on semi-urban and rural routes.By making shared and public transport more affordable, the government hopes to encourage people to shift away from private vehicles, reducing congestion and pollution.GST on art and cultural products, such as statues, engravings, lithographs, ornamental articles, and stone craft, has been reduced from 12% to 5%. This move benefits artisans, craftsmen, and sculptors, giving economic support to India’s traditional cottage industries.Travellers purchasing art or cultural goods will see lower prices, while the global promotion of Indian handicrafts may also increase.While budget travel is set to get cheaper, luxury travel will now cost significantly more. GST on private jets, helicopters, and yachts has been raised to 40%, up from 28% plus 3% compensation cess. Premium air tickets in business and first class will attract 18% GST, up from 12%, though economy class fares remain at 5%.Industry experts estimate that these changes could increase the cost of private jets by Rs 1.5 crore to Rs 40–50 crore, depending on the model, and significantly raise the price of luxury marine craft.
