GST reforms can boost tourism growth

Union Tourism Minister Gajendra Singh Shekhawat underlined the role of tourism as a major contributor to India's economy, emphasising that the sector has immense scope for further growth. Speaking at the 12th Annual Convention of

the Indian Heritage Hotels Association (IHHA) at Castle Kanota on September 6 he said, "Tourism already contributes 5-6% to India’s GDP, compared to nearly 10% globally. With our cultural richness and diversity, the sector can further boost the economy."

He called upon industry stakeholders to focus on promoting lesser-known destinations and enriching visitor experiences. The event was inaugurated by Rajasthan Deputy Chief Minister Diya Kumari, who unveiled a tourism mobile app and announced new policies to support film, adventure, and

heritage tourism. She highlighted that India's travel and tourism industry generated₹20.9 lakh crore in 2024 and created 4.65 crore jobs.

Nearly 150 hoteliers from across the country are participating in the two-day convention, themed Romantic Heritage. IHHA President Emeritus HH Maharaja Gaj Singh, in his address, emphasised the importance of safeguarding heritage for future generations.

The 56th GST Council Meeting, chaired by Union Minister Smt. @nsitharaman, has laid out the 7 pillars of #NextGenGST reforms that will shape India’s economic future.

The outcomes highlight how GST continues to evolve into a citizen- and business-friendly system, driving growth… pic.twitter.com/Dbd6GVaIea

— BJP (@BJP4India) September 5, 2025

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Earlier, Shekhawat welcomed the GST Council's decision to restructure tax slabs, voicing confidence that the move would strengthen India's economic momentum. "The manner in which India has made progress from an economic point of view, GST slabs have been revised and tax on all products used by a common man have been brought down, it will definitely bring a jump in the Indian economy and provide new heights to the market," he told reporters.

Earlier, Finance Minister Nirmala Sitharaman announced

extensive cuts in the Goods and Services Tax (GST) to ease financial pressure on households, farmers, businesses, and the healthcare sector. The 56th GST Council meeting decided to rationalise rates into two main slabs of 5% and 18%, merging the earlier 12% and 28% categories.

The 5% rate will now apply to essential goods and services, including food staples such as butter, ghee, cheese, pre-packaged snacks, and kitchen utensils. Moreover, it will cover agricultural equipment like drip irrigation systems, sprinklers, and tractors,

as well as handicrafts, sewing machines, and medical kits.

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The 18 slab has been fixed as the standard rate for most products and services, covering automobiles such as small cars and motorcycles up to 350cc, electronic and household items, and various professional services. Auto parts will fall under this category.

A higher rate of 40% will continue for luxury and "sin goods" including tobacco, pan masala, sugary drinks, luxury vehicles,

high-end motorcycles, yachts, and helicopters.

Additionally, several essential services remain exempt from GST, such as health and life insurance premiums, as well as selected education and healthcare services.