GST reforms to boost hospitality, transport, cultural sectors

New Delhi [India], September 22 (ANI): The Government has announced major changes in Goods and Services Tax (GST) rates to make tourism more affordable, strengthen public transport, and provide relief to artisans. The decision, according to an official release, is aimed at creating jobs, encouraging investments, and supporting India's cultural heritage.
The new measures reduce GST on hotel rooms priced below Rs. 7,500 per day from 12 per cent to 5 per cent. This is expected to make hotel stays cheaper for middle-class and budget travellers. The release said the move would bring India's hospitality tax structure closer to global tourism destinations and help attract more foreign visitors. Government expects the reform to boost weekend travel, pilgrimage circuits, heritage tourism, and eco-tourism, while also encouraging investment in mid-segment hotels, homestays, and guesthouses.
GST on buses with seating capacity of more than 10 persons has been cut from 28 per cent to 18 per cent. According to the release, this will lower the cost for fleet operators, schools, corporates, tour providers, and state transport bodies. The change is expected to reduce ticket fares, especially on semi-urban and rural routes. Authorities say the step will push people towards using shared and public transport, helping reduce traffic and pollution while improving safety and comfort standards.
The reforms also extend to the cultural sector. GST on art and cultural goods, such as statues, prints, ornamental articles, stone artware, and inlay work, has been lowered from 12 per cent to 5 per cent. The government said this will directly support artisans and sculptors engaged in India's traditional cottage industries. The move aims to keep temple art, folk traditions, miniature painting, printmaking, and stone craftsmanship economically viable, while also promoting Indian culture globally.
Between 2021 and 2024, India recorded a sharp recovery in foreign tourist arrivals, from 15.27 lakh visitors in 2021 to 99.52 lakh in 2024. Officials said this rise shows growing international interest in India as a destination. The government believes the new GST measures will further support this growth.
"The Government of India, through the Ministry of Culture, has launched comprehensive efforts to preserve, promote, digitize, and globally showcase India's rich cultural heritage, including traditional arts, monuments, and heritage sites, while actively supporting artisans and cultural institutions," the release said.
According to the release, the expected impact of the reforms includes a rise in tourism, greater job creation in hospitality, transport, and craft sectors, and stronger economic support for traditional art forms. The measures also aim to promote sustainable practices by encouraging the use of public transport.
Under the leadership of Prime Minister Narendra Modi, these reforms form part of a larger vision of sustainable and inclusive growth. By reducing the cost of travel, accommodation, and cultural goods, steps are expected to make India more attractive to both domestic and international tourists, while also ensuring that traditional artisans find new markets and opportunities. (ANI)