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Big Relief for Travellers! Government Slashes GST on Hotels, Buses, and Handicrafts

Your holidays and daily travel are about to get cheaper! The government has announced major GST cuts on mid-range hotels, buses, and traditional Indian art and crafts. This move aims to boost tourism, ease your commute, and support local artisans across the country.
Great news for everyone who loves to travel and explore India! The Government, under the leadership of Prime Minister Shri Narendra Modi, has just announced a significant reduction in GST rates on several key services and goods. This fantastic move is set to make your holidays more affordable, your daily bus travel cheaper, and give a much-needed boost to our country's talented artisans.
Let's break down what these changes mean for you and for India.
Your Hotel Stays Just Got More Affordable
Planning a family vacation, a pilgrimage, or a weekend getaway just got easier on your wallet.
The GST on hotel rooms priced under ₹7,500 per day has been slashed from 12% to a much lower 5% (without Input Tax Credit). This is a direct saving for millions of middle-class and budget-conscious travellers. This change not only makes popular tourist spots more accessible but also brings India's hotel tax rates in line with other major global destinations, making our country even more attractive to foreign tourists.
This move is expected to encourage investment in new mid-segment hotels and homestays, leading to better facilities and more jobs in the hospitality sector.
Making Public Transport Pocket-Friendly
For those who rely on buses for their daily commute or long-distance travel, there's good news too.
The government has cut the GST on buses and minibuses (with 10 or more seats) from a steep 28% down to 18%. By making buses cheaper to buy, this will help state transport companies, tour operators, and even schools to expand and modernise their fleets.
Ultimately, this should lead to lower ticket prices, especially on routes in smaller towns and rural areas. It's also a big win for the environment, as it encourages more people to use public transport, which means less traffic and pollution on our roads.
A Big Boost for Indian Culture and Artisans
India's rich cultural heritage is one of its greatest treasures, and this GST cut aims to protect and promote it.
GST on a wide range of traditional art and cultural items has been reduced from 12% to 5%. This includes beautiful items like statues, stone art, ornamental articles, and traditional prints and lithographs. This is a direct economic benefit for our hardworking artisans, craftsmen, and sculptors, helping them continue their timeless traditions. It makes Indian handicrafts more competitive in both domestic and international markets, preserving our living heritage for generations to come.
What This Means for India
These well-planned GST reductions are about more than just saving money. They are set to create a positive ripple effect across the economy. The recent surge in Foreign Tourist Arrivals, from 15.27 lakh in 2021 to an impressive 99.52 lakh in 2024, shows that India's tourism sector is on a strong recovery path. These new measures will accelerate that growth.
The expected impacts are huge:
- More Tourism: Cheaper travel and stays will attract more domestic and international tourists.
- Job Creation: The hospitality, transport, and artisan sectors are all set to grow, creating thousands of new jobs.
- Cultural Preservation: Our traditional art forms will get the economic support they need to thrive.
- Sustainability: Cheaper bus travel promotes a greener, cleaner mode of transport.
This is a strategic move to build a vibrant, inclusive, and sustainable economy that celebrates the best of what India has to offer.
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