If you’ve ever opened a travel app, searched for a quick weekend getaway, and then slammed your phone shut faster than a mother spotting her child’s report
card full of red marks—welcome to the club. Airfares have been soaring, hotel bills have been heart-stopping, and for many of us, those “cheap travel deals” are about as mythical as unicorns. But just as we were preparing to turn our holiday dreams into “maybe next year” plans, the Goods and Services Tax (GST) Council dropped a new set of reforms that might actually make holidays affordable again—or at least less painful on the wallet. The Council, led by Finance Minister Nirmala Sitharaman, met for its 56th round on 3 September 2025 and made sweeping decisions on how much we’ll pay for hotels, air tickets, dining, and even private jets (yes, someone out there really needed clarity on yacht taxes too). The changes kick in from 22 September 2025—just in time for the festive and wedding season, when Indians famously spend like there’s no tomorrow. Here’s everything you need to know before you book that Diwali trip, Goa getaway, or “because I deserve it” long weekend.
Hotels: Mid-Range Holidays Just Got Friendlier
Let’s start with the big one—hotel rooms. For years, travellers have winced at that extra 12% slapped on anything above a bare-bones stay. Now, rooms costing between Rs 1,001 and Rs 7,500 a night will attract only 5% GST instead of 12%. Translation: a room that used to tack on Rs 540 tax to a Rs 4,500 bill will now add just Rs 225. Suddenly, that hill station weekend doesn’t feel like financial betrayal.
- Rooms under Rs 1,000 a night? Still tax-free.
- Rooms Rs 1,001–Rs 7,500? Now at 5% GST (down from 12%).
- Rooms above Rs 7,500? Sticking at 18% GST.
Flights: Economy Wins, Business Takes a Hit
This one’s a bit of a mixed bag. Economy travellers, the backbone of Indian aviation, can breathe easier. GST on economy tickets drops from 12% to 5%. That means your Pune-to-Delhi round trip during Navratri might finally cost less than a small refrigerator.
But here’s the twist: Business and first-class fares now attract 18% GST, up from 12%. So if you’re used to stretching out with a glass of champagne and noise-cancelling headphones, prepare to pay extra for the privilege.
And yes, the timing matters. Book your ticket before 22 September and the old GST applies, even if your actual travel date is later. Financial experts confirm it’s all about when the booking is made, not when the flight takes off. Fun fact: the GST Council actually cited Section 14 of the CGST Act here, proving once again that Indian tax law has a knack for sneaking into our holiday planning.
Dining Out: Family Meals Won’t Feel Like Daylight Robbery
Restaurants also get a tax breather. Meals that were earlier slapped with 12–18% GST are now taxed at just 5%. So the next time you’re out for a biryani binge or a pizza night, you’ll spend a little less. And for wedding-goers, this means buffet dinners might finally leave more room in the budget for new clothes and cab fares.
Luxury Travel: The Champagne Glass Just Got Pricier
For the one percenters flying private or sailing in from Monaco, the GST Council had a different message: pay up. Private jets, helicopters, and yachts will now attract a flat 40% GST, up from the earlier 28% plus 3% cess. That means acquiring or importing these toys will become significantly costlier. It’s the Council’s way of saying, “If you can afford a yacht, you can afford the tax.”
And if you’re wondering about premium air tickets—yes, business and first-class travellers are lumped into this “luxury” rethink, hence the steeper GST.
What Does This Mean for Tourism and You?
The GST Council’s revisions are clearly designed to boost domestic tourism and hospitality. After the pandemic walloped the travel industry, cheaper hotels, economy flights, and dining bills are expected to revive consumer enthusiasm. More families may decide to finally book that long-postponed trip, millennials might splurge on weekend breaks, and weddings will see more out-of-town guests flying in.
In short:
If you’re a budget or mid-market traveller – you win big.
If you’re a business-class flyer or yacht enthusiast – your wallet takes the hit.
If you love dining out – celebrate, because bills just got lighter.
Pack Your Bags, Not Your Excuses
The government seems to have cracked the formula: make everyday travel more accessible while raising revenue from luxury segments. For most Indians, this feels like a long-overdue nod to the fact that travel shouldn’t be a luxury, but a lifestyle.
So go ahead, dust off that suitcase. With GST rates finally tilting in favour of the regular traveller, that weekend in Jaipur or three-day Goa escape might just be within reach again.
