New GST rates: Hotel rooms to be cheaper, economy flyers benefit; details

When India's new Goods and Services Tax (GST) comes into effect on September 22, the travel industry is expected to benefit in various sectors. For instance, hotel rooms, with rates up to ₹7,500, would be cheaper by about ₹525 from Monday. Meanwhile, a 5 per cent GST is to be maintained on economy-class air tickets, while the rest of the categories will have 18 per cent GST from now on. The changes are expected to benefit budget tourists, with services becoming more affordable.

Here are a few of the other changes:
1) Rooms that cost below ₹1,000 per night will be GST-free
2) Rooms that cost between ₹1,001 and ₹7,500 will have up to 5 per cent GST (The earlier rate was 12 per cent)
3) Luxury hotels with room charges above ₹7,500 will have the existing 18 per cent GST
4) As for international flights, GST is applicable only on specific fees like subcharges and convenience fees collected in India

5) Domestic segments of international flights will attract GST, but outbound tickets will see a minimum impact
6) Dining out during travel is expected to be cheaper as it will attract only about 5 per cent GST now on, as opposed to the previous 12 to 18 per cent
7) GST on theme parks, guided tours and adventure parks may reduce
(With inputs from PTI)