The GST Bachat Utsav, which began on September 22, has brought much-needed relief across multiple sectors, with the tourism and hospitality industries witnessing particularly positive impacts. The Narendra Modi government’s decision to slash GST rates is now translating into tangible benefits for both citizens and businesses.
Under the new reforms, the GST on hotel stays priced below ₹7,500 per night has been reduced from 12% to 5%, making accommodation significantly more affordable. This change is expected to encourage domestic travel, especially among middle-class families and budget-conscious tourists. Industry experts say this move not only boosts occupancy rates but also enhances India’s global competitiveness as a travel destination.
“This GST reduction is a game-changer for small and mid-range hotels,” said a hospitality industry representative. “It will help revive post-pandemic tourism and drive more bookings from both domestic and international travelers.”
Additionally, the GST rate on buses with seating capacities exceeding ten persons has been reduced from 28% to 18%, easing costs for tour operators, fleet owners, and transport agencies. This will make group travel and intercity tourism more accessible and economical, further strengthening India’s tourism infrastructure.
The government’s reforms are also expected to create ripple effects across local economies — from increased demand for homestays and eco-resorts to higher spending on food, handicrafts, and cultural experiences. Tourism-related employment, including guides, transport providers, and artisans, is likely to see a steady rise.
The GST Bachat Utsav symbolizes a strategic push by the government to position tourism as a key growth engine. By making travel more affordable and streamlining the tax structure, these reforms are set to reinforce India’s vision of becoming a global tourism powerhouse.