GST Rates in India: Costs That Will Affect Your Travel Budget Starting NOW!

It’s not every morning that travellers are buzzing over tax rates, but today feels GST-free (or low, to be more specific). But is it? The GST rates in India are shifting for the better. It’s got everyone buzzing, in airports, hotel lobbies, and even on bumpy bus rides, all about how these new GST rates might just make journeys cheaper, smoother, keeping your wallets as heavy as possible.

Imagine booking the best flight deals online, and realizing that the government has chipped in to keep things affordable. That’s what we love about India, right?

Why Travelers Are Celebrating in Every Corner

The Ministry of Tourism India officially announced that the reduced (and increased) rates will finally kick into motion starting this September! It’s not only a celebration for every explorer, but also makes life easier for artisans, public transport drivers, and the middle class, boosting weekend escapes, eco-tourism adventures, and cultural escapes to the hidden corners.

Check out the travel-related list of items with new GST rates:

GST on Flights:  

Economy Tickets: Dropped to 5% from 12%
Business Class Tickets: Dropped to 12% from 18%

AT Budget Travel Tip: Book early to get the best deal, as reduced GST means more demand for the best seats.

GST on Hotels and Resorts (per night):

Rooms under Rs. 1,000: No Tax
Rooms between Rs. 1,000 and Rs. 7,500: Dropped to 5% from 12%-18%
Rooms above Rs. 7,500: 18% Tax

Find the best deals on hotel bookings online anytime, anywhere, with the new GST rates in India rules!

• GST on Restaurants: Dropped to 5% from 18% (guess who’s never saying no to some local flavour on their next trip!)
• GST on Buses: Dropped to 18% from 28%
• Vehicle Rentals: 5% Tax. Need another reason to try local rides in India?
• GST on Arts & Cultural Goods: Dropped to 5% from 12%
• GST on Trains: 5% on AC coaches. No tax on others.

Make the new GST rates list 2025 your new cricket score gossip, because you’re literally getting an adventure at the end of it. Travelers ultimately benefit because that long-dreamed road trip or a quick city-hopping flight suddenly feels more doable.

Psst…Did you know, there’s only 18% GST on all-inclusive domestic tour packages India? Seems expensive, but it’ll save you much more than booking everything individually, plus give you a planned itinerary for free!

Explore: New GST Rates on Hotel Room Stays Explained: A Game Changer for Travellers.

Best Time to Travel Under the New GST

Yes, prices are low as GST travel reforms fall into place, but what if we told you that you can get them lower? The key is to ace the timings when GST rates in India add with other discounts, and you’re right on time.

With the festive season around the corner, Akbar Travels is offering discounts up to Rs.20,000 on domestic and international flights and 15% OFF hotels, tours, and processing on online visa services for 180+ countries. Can you imagine the savings?

Soon, the monsoon clouds will drift away, leaving the wonderful North and the beautiful beaches of the South worth exploring.

Discover: Best Time to Visit Kochi: Plan Your Trip Like a Pro.

A Positive Impact on India’s Tourism Industry

Do you know what the new GST rates list 2025 September means for travel? Let’s take a peek:

• Enhanced domestic exploration: More savings will urge Indians to explore their country better, bringing Tier 2 and 3 cities to the spotlight soon.
• A Treat for International Travellers: Low tax? How could foreign explorers say no, either!
• Luxury Travel Swapped for Immersive Experiences: Since going luxury gets costlier, people might prefer the local experiences better.
• Growth in Entrepreneurship and Job Opportunities: With more tourism comes more business and enhanced job opportunities.

So, since the new GST rates are on your side, why not plan an adventure right about now?

Summing Up:

The new GST rates in India have made travel incredibly pocket-friendly. With a drop to 5% on economy flights and 12% on Business class flight seats, and a drop to 5% on hotel bookings below INR 7,500, exploring India is not incredibly cheap. Adding festive discounts to the already lower prices is one of the best ways to explore in 2025, so when will you begin?

FAQs: GST Rates in India

What is the GST rate for travels?
Passengers booking economy class flight tickets can now pay 5% GST instead of 12% and business class can pay 12% instead of 18%. The biggest drop is observed in hotels, where booking for a day below INR 1,000 is not taxed. Luxury travel taxes increase, as per the new GST rates.

Is train travel GST free?
Travelling on AC trains comes with 5% GST fee, while in other coaches, you can book without worrying about tax worries.

What is the GST rate for hotels?
The GST rate for hotels below INR 1,000 per day is zero, while those between INR 1,000 and INR 7,500 are 5%. Luxury rooms and suite bookings come with an 18% GST rate.

Do I have to pay GST if hotel rooms are below 1000 RS?
No, you don’t have to pay GST if the hotel rooms cost below Rs. 1,000.

What is the GST rate on flights?
GST on economy class flights is 5% and on business class flights is 12%.

Can I claim GST on flight tickets?
Yes, you can claim GST on flight tickets when getting a refund.

Is GST applicable on visa charges?
Yes, there are certain GST rates applicable to visa charges.

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