India’s Travel Gets Cheaper as GST Slashes Prices on Flights and Hotels

Come 22nd September 2025, India’s new GST structure will significantly delight travellers. Mid-range hotels priced up to ₹7,500 per night will now attract only 5 percent tax, down from 12 percent, making stays more affordable for middle-class Indians. Economy class airfares remain taxed at a low 5 percent, and business class fares get a break, dropping from 18 percent to 12 percent. The simplification to just two GST slabs, 5 percent and 18 percent, is hailed as a move that will promote domestic tourism and spur spending. Industry leaders expect this to boost bookings, especially during the festive season, by reducing the cost burden on families and holidaymakers. These changes reflect the government’s push to revive the travel and hospitality sectors with consumer-friendly pricing.