As the festive season approaBches, travelers have received good news.
Starting September 22, 2025, the government is reducing GST rates on hotel rooms and restaurant food, making travel packages more affordable across the country.
What’s Changed in Hotel GST Rates?
Now, only 5% GST will be charged on hotel rooms that cost up to Rs 7,500 per night.
Earlier, this rate was 12%.
Example: A hotel room costing Rs 4,000 per night used to cost around Rs 4,480 after tax.
Now, the total will be around Rs 4,200.
Rooms priced below Rs 1,000 per night will now have zero GST, which is a big benefit for budget travelers.
Eating Out Becomes Cheaper Too
Previously, 12% to 18% GST was charged on hotel or restaurant food.
Now, it has been reduced to just 5%.
Example: A restaurant bill of Rs 5,000 earlier became Rs 5,900 after tax.
Under the new rate, it will be Rs 5,250, giving 7% to 20% direct savings.
