India Updates Consumption Tax Rules: What is Changing for the Tourism Industry
The changes in the taxation system have made one thing clear: India wants to make travel accessible to everyone, but it will not be subsidizing premium travel experiences.
India’s Goods and Services Tax (GST) Council Wednesday night proposed changes to its tax levies across industries. These include proposed revisions that would impact the tourism industry in India:
Hotel accommodations charging up to INR 7,500 ($85) per day for a room will now attract a tax of 5% as against the previous 12% tax levy. GST on air tickets for cabin classes other than economy class has been increased from 12% to 18% under the proposed changes. The tax levy on economy class has been retained at 5%. There has also been a significant increase in tax bracket on admissions to casinos, race clubs, any place having casinos or race clubs, or sporting events like the cricket tournament Indian Premier League. These will now attract a 40% tax instead of the previous 28%.According to the travel industry, the reduction in GST on hotel rates and the continued 5% levy on economy class tickets will allow affordability for mass Indian travelers.
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