The government has rolled out revised Goods and Services Tax (GST) rates under what officials are calling a reset of the system, aimed at making hotel stays cheaper, public transport more accessible and India’s cultural industries more competitive, according to IANS.
Hotels and hospitality gain from tax relief
The GST on hotel rooms priced below Rs 7,500 a night has been cut from 12 per cent to 5 per cent, without input tax credit. Officials said the change would benefit middle-class and budget travellers, bring India’s hospitality tax structure closer to global norms and make the country more attractive for foreign tourists.
The cut is also expected to spur weekend travel, pilgrimage circuits, eco-tourism and heritage tourism. The change could drive investment in mid-segment hotels, homestays and guesthouses, creating jobs and strengthening hospitality infrastructure.
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Public transport set to benefit
GST on buses with seating capacity of more than 10 passengers has been reduced from 28 per cent to 18 per cent. The change will ease the cost burden for fleet operators, schools, corporates and state undertakings, making expansion and modernisation more viable.
Lower operating costs are expected to translate into cheaper fares, especially in semi-urban and rural routes. Officials highlighted that the move could shift commuters from private vehicles to public transport, easing congestion and reducing emissions.
Relief for artisans and cultural heritage
The GST on cultural and artistic goods – including statues, statuettes, lithographs, ornamental articles, stone art ware and inlay work has been lowered from 12 per cent to 5 per cent. The government said the reduction would support artisans and sculptors while safeguarding traditions such as temple art, miniature painting and folk expression.
Officials added that the lower rates would help Indian cultural goods compete more effectively in global markets and integrate traditional crafts into modern value chains.
Supporting inclusive recovery
The Finance Ministry said the rate cuts form part of Prime Minister Narendra Modi’s vision of sustainable and inclusive growth. “The reductions will strengthen the domestic tourism ecosystem, promote cultural heritage, and encourage investment in related sectors,” the statement said. According to the government, the revised structure will not only aid the post-pandemic recovery of tourism but also generate jobs, attract investment and position India as a more competitive and vibrant global destination.
