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GST Reforms to Boost Hotels, Transport and Cultural Industries

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22 SEP 2025, New Delhi

The Government has announced new GST changes to make tourism, transport, and cultural sectors stronger. These steps aim to make hotel stays cheaper, encourage people to use public transport, and give support to local artisans. Prime Minister Narendra Modi said these reforms will create jobs, promote Indian culture, and help the economy grow. Lower taxes to help tourists, public transport, and traditional craftsmen.

Hotels:

  • GST on hotel rooms below ₹7,500 per night has been cut from 12% to 5%.
  • This will make travel and pilgrimage more affordable for middle-class families.
  • Cheaper hotel rates will also attract more foreign tourists and boost heritage and eco-tourism.

Transport:

  • GST on buses (with more than 10 seats) is reduced from 28% to 18%.
  • This will lower the price of buses and bring down ticket fares.
  • It will encourage people to choose buses over private cars, reducing traffic and pollution.

Art and Culture:

  • GST on cultural goods like statues, stone art, and traditional crafts has been cut from 12% to 5%.
  • This will directly help local artisans and craftsmen.
  • It will also preserve India’s heritage and promote Indian art across the world.

Tourism Growth:

Foreign tourist arrivals have already shown strong growth, rising from 15.27 lakh in 2021 to 99.52 lakh in 2024. These new GST cuts are expected to further increase tourism and investment in related sectors.

Expected Impact:

  • More affordable tourism and travel.
  • New jobs in hotels, transport, and handicrafts.
  • Better support for cultural heritage.
  • More use of public transport, which will reduce traffic and pollution.

The GST cuts are not just about lower taxes—they are about building jobs, supporting culture, and making travel easier. With these changes, India is set to become an even more attractive destination for both domestic and foreign tourists.

Source: PIB

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Mahalakshmi, founder of Global News Express, writes in-depth news and analysis on stock markets and investments.