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Budget hotels to get cheaper with new GST rates
Good news for travelers—hotel rooms under ₹7,500 per night just got more affordable, thanks to the GST Council dropping tax from 12% to 5%.
The move is set to make trips easier on your wallet and could spark a rise in domestic tourism.
But hotel industry leaders are urging the government not to remove input tax credit, which helps hotels manage costs.
Hotel leaders urge government to retain input tax credit
Hotel groups warn that losing input tax credit could slow down investment in budget and mid-range hotels.
K Syama Raju from the Federation of Hotel and Restaurant Association of India believes this rate cut will boost demand and occupancy, saying it should encourage more spending across the hospitality value chain.
Keeping input credits intact is important for continued growth.