GST Reforms to Strengthen Hospitality, Transport and Cultural Sectors
GST Reforms to Strengthen Hospitality, Transport and Cultural Sectors
Introduction
The Government has announced significant GST rationalization measures aimed at making India’s tourism sector more affordable, enhancing public transport use, and supporting artisans and cultural industries. These reductions will strengthen the domestic tourism ecosystem, promote cultural heritage, and encourage investment in related sectors.Under the leadership of PM Modi, these reforms align with the vision of sustainable and inclusive growth, fostering job creation and investment in hospitality, transport, and traditional crafts, while also accelerating the post-pandemic recovery of India’s tourism sector.
GST Reduction on Hotels (<₹7,500/day) – From 12% to 5% (without ITC)
GST Reduction on Buses (Seating Capacity of 10+ Persons) – From 28% to 18%
From 2021 to 2024, Foreign Tourist Arrivals (FTAs) in India showed a significant increase from 15.27 lakh in 2021 to 99.52 lakh in 2024, indicating a robust recovery and growth in tourism post-pandemic. This surge reflects a strong revival in international travel and heightened interest in India as a tourist destination during this period.
GST Reduction on Art and Cultural Goods – From 12% to 5%
The Government of India, through the Ministry of Culture, has launched comprehensive efforts to preserve, promote, digitize, and globally showcase India’s rich cultural heritage, including traditional arts, monuments, and heritage sites, while actively supporting artisans and cultural institutions.
Expected Impact
Conclusion
These GST reductions reflect a strategic effort by the Government to boost India’s tourism and cultural sectors by enhancing affordability, supporting traditional artisans, and encouraging sustainable transport. By fostering greater accessibility and preserving cultural heritage, these measures are poised to generate significant economic growth, create jobs, and promote India’s image globally as a vibrant and inclusive destination.
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