GST 2.0: Many such decisions were taken in the GST Council meeting, which benefited everyone from common people to businessmen. The current four GST slabs were reduced to two. No, we only have 1per cent and 2 per cent tax slabs will work. This will benefit people with a fall in India’s inflation rate. The tax burden on businessmen’s production will also be reduced.
On the other hand, if you are fond of travelling, then staying in a hotel will now become cheaper. Now the government has reduced the tax on hotel rooms. Now, only 5 per cent GST will be levied on hotel rooms with rent up to Rs 7500. Earlier, a 12 per cent tax was levied on staying in these hotel rooms. The tax rates revised in the GST Council will come into effect from 22 September 2025.
The burden on the pocket will be less.s
Online tickets for hotel rooms will become cheaper. Rajesh Mango, co-founder of online booking platform MakeMyTrip, said that with the tax reduction, staying in hotels will become much easier. People will be seen travelling more as soon as the expenses are reduced. This is likely to provide great relief to the economy of people. Hotel businessmen have also praised this decision of the GST Council.
According to Nikhil Sharma, South Asia Head of Radisson Hotel Group, this step will be seen to promote India as a big tourism hub. Along with this, the President of the Federation of Hotel and Restaurant Associations (FHRAI), K Shyama Raj, said that now hotels will work to make the city more attractive for both foreign and domestic tourists.
Bookings will increase during festivals and the wedding season
According to Ajay Bakaya, Chairman of Sarovar Hotels, this decision is going to increase the confidence of the people. Along with this, Ankit Pathak, CFO of Ebix Travels, said that with the 5 per cent GST slab, people will go towards new destinations. Anyway, the travel demand is highest during festivals and the wedding season.