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flag India cuts hotel GST to 5% from Sept. 22, 2025, lowering prices by up to ₹525 per night.

flag Starting September 22, 2025, hotel rooms in India priced at ₹7,500 or less per night will see up to ₹525 in nightly savings due to a GST reduction from 12% to 5%. flag The change, effective with the new fiscal regime, aims to boost affordability and stimulate demand, especially in mid-market and smaller cities. flag Savings extend to food and beverage menus, lowering overall travel costs. flag Industry leaders say the reform supports revenue growth, reinvestment, and improved value for travelers. flag A simplified tax structure with rates at 5% and 18% enhances clarity for operators and guests. flag While the move is welcomed, stakeholders emphasize retaining input tax credit to ensure long-term benefits for the hospitality sector.

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