If you’re thinking about going on a holiday at the end of the year, then make sure to include the new GST 2.0 rules in your travel planning.
Recent changes in the GST system have changed the way travel costs are calculated, especially for hotel bookings and flight tickets.
By keeping a few simple tips in mind, you can make your trip much more affordable. The good news is that GST 2.0 is especially helpful for budget travelers.
Hotel Bookings Get Cheaper Under GST 2.0
Under the new rules, hotel rooms costing up to ₹7,500 per night will now attract only 5% GST, instead of the earlier 12%. Rooms priced above ₹7,500 will continue to be taxed at 18% GST.
For example, if you book a room for ₹7,000, you used to pay ₹840 in GST earlier. Now, you’ll pay only ₹350, saving ₹490 per night. So, your total cost becomes ₹7,350.
However, if you book a room for ₹8,000, you’ll now pay ₹1,440 in GST, making the total ₹9,440. So, for spending just ₹1,000 more on the room, you end up paying over ₹2,000 extra.
Smart Tip: Always try to book a hotel room under ₹7,500 to get the maximum benefit from GST 2.0.
Air Travel Tips – Book Before GST Hike on Premium Flights
Another major change comes in flight bookings. Starting from September 22, 2025, GST on business, premium economy, and first-class tickets will rise from 12% to 18%.
So, if you’re flying in premium classes, your tickets will become even more expensive after this date.
Smart Tip: If you must fly premium, book before September 22. Even if your flight is after this date, the old 12% GST will still apply if the ticket is booked earlier.
For economy class travelers, there’s no change. GST stays at 5%, so economy remains the most budget-friendly option.
Cancellation Policy – GST Refund Still Applies
If you book a ticket under the old 12% GST and later cancel it, the airline must refund the same GST amount.
Your refund will not be affected by the new GST rates, so you don’t have to worry about losing extra money due to tax changes.
In short, plan smartly this festive season: book hotel rooms below ₹7,500, avoid premium flights after Sept 22, and book early to lock in lower GST rates.
It’s a great way to enjoy your vacation without spending extra.
