An important decision has been taken in the recent GST Council meeting. The GST rate on hotel rooms has been reduced. Now, for hotel rooms up to ₹7,500, the GST rate has come down from 12% to 5%. This rule will start from September 22. Because of this, staying in hotels will become cheaper for travelers.
Earlier, on a room of ₹7,500, people had to pay ₹900 GST. Now they will pay only ₹375 GST. This means a saving of ₹525. The decision mainly helps budget and mid-range hotels, so that common people can also travel easily and at a lower cost.
Experts say this step will make domestic tourism stronger. The hotel industry will also benefit, as their income can increase by 7–10%. This move of the government is an important effort to promote the tourism sector.
Big Changes in GST Rates
In the important GST Council meeting on Wednesday, historic changes were approved. After about eight years, the GST slab system has been reduced. The 12% and 28% slabs are removed. Now only 5% and 18% slabs will apply.
Everyday items are made cheaper and health and life insurance premiums are now tax free. The new GST rates will start from September 22, 2025. There is no change on tobacco products yet. The current rates will continue for them, and new rates will be announced later.
Relief on Daily Needs
The GST Council reduced tax on many household items. Now only 5% GST will be charged on toilet soap, shampoo, toothbrush, shaving cream, hair oil and face powder. Earlier, the rate was 18%.
Food items also got relief. No GST will be charged on roti and paratha. Namkeen, bhujia and mixture will have 5% GST instead of 12%. Butter, ghee, cheese and dairy spread are also under the 5% slab now.