Revised GST Slabs to Make Airfare and Hotel Bookings More Affordable From September 22, 2025.
The 56th GST Council meeting, held on September 3, 2025, in New Delhi, brought some good news for travellers and the hospitality sector. Finance Minister Nirmala Sitharaman, who chaired the session, announced a series of GST rate reductions on hotel stays and air travel — just in time for the festive and wedding season in India.
The revised GST rates will come into effect from September 22, 2025, aiming to make travel more budget-friendly for millions of domestic and international travellers.
GST on Hotels: What’s Changed?
The GST Council has approved revised GST slabs for hotel rooms, significantly lowering taxes for mid-range and budget travellers.
New GST Rates for Hotel Rooms:
| Room Tariff (per night) | Old GST Rate | New GST Rate (from Sept 22) |
|---|---|---|
| Below ₹1,000 | 0% (No change) | 0% |
| ₹1,000 – ₹7,500 | 18% | 12% |
| Up to ₹7,500 (with ITC) | 12% (with ITC) | 5% (without ITC) |
| Above ₹7,500 | 18% | 18% (No change) |
GST on Air Travel: Economy & Business Class Get Cheaper
Air passengers also benefit from the revised GST structure.
New GST Rates for Air Travel:
| Ticket Class | Old GST Rate | New GST Rate |
|---|---|---|
| Economy Class | 12% | 5% |
| Business Class | 18% | 12% |
Implications:
- Economy tickets are now significantly cheaper.
- Business class flyers enjoy a 6% tax cut, ideal for corporate travel.
- The lower tax rates may help airlines boost seat occupancy and demand.
How This Impacts Tourism, Hospitality & Consumers
The reduced GST rates are expected to:
- Boost domestic tourism, especially during festivals and wedding season.
- Provide relief to hotels, travel agencies, and airlines hit hard by the pandemic.
- Make both leisure and business travel more affordable.
- Encourage more spending on weddings, events, and vacations.
Net result: More people travelling, booking hotels, and celebrating — without breaking the bank
A Win-Win for Travellers and the Industry
With these revised tax rates, flights and hotels are set to become noticeably cheaper starting September 22, 2025. Whether you’re planning a family holiday, a destination wedding, or a business trip, these changes are designed to make your journey lighter on the wallet.
Also Read : GST Rate Overhaul 2025: What’s Cheaper and What’s Costlier? [Full List]
