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GST reforms to boost hospitality, transport, cultural sectors

India’s government is shaking things up with big cuts to Goods and Services Tax (GST) rates, all aimed at making tourism cheaper, boosting public transport, and giving a hand to local artisans. These changes, unveiled in a recent official release, focus on sparking job growth, drawing in investments, and celebrating the country’s rich cultural heritage.

First up, hotel rooms costing less than Rs. 7,500 per night now face a GST drop from 12% to just 5%. This tweak should make stays more affordable for everyday travelers and families on a budget. Officials say it aligns India’s hospitality taxes with those in top global spots, pulling in more international visitors. Expect a surge in weekend getaways, pilgrimages, heritage tours, and eco-adventures. Plus, it could fuel investments in cozy mid-range hotels, homestays, and guesthouses across the country.

Public transport gets a win too. Buses that seat more than 10 people see their GST slashed from 28% to 18%. That means lower costs for bus fleets run by schools, companies, tour operators, and government transport services. Ticket prices should dip, especially on routes in smaller towns and rural areas. The goal? Get more people ditching cars for shared rides, cutting down on traffic jams and air pollution while ramping up safety and comfort on the roads.

The arts world isn’t left out. Items like statues, prints, decorative pieces, stone artwork, and intricate inlay designs now qualify for a GST reduction from 12% to 5%. This directly helps artisans and craftspeople in India’s traditional workshops. It keeps alive temple carvings, folk arts, miniature paintings, printmaking, and stonework, ensuring these cultural gems stay profitable. At the same time, it spotlights Indian heritage on the world stage.

Tourism in India is already bouncing back strong. Foreign visitors jumped from 1.527 million in 2021 to 9.952 million in 2024, signaling huge global buzz about the country as a must-visit spot. The government hopes these GST reforms will keep that momentum going.

Through the Ministry of Culture, India is pouring resources into saving, promoting, digitizing, and sharing its treasures—from ancient arts and monuments to historic sites. This includes real support for artisans and cultural groups.

Overall, these moves promise a tourism boom, fresh jobs in hotels, transport, and crafts, plus better economic backing for age-old art forms. They also nudge folks toward greener choices like public buses for sustainable travel.

Led by Prime Minister Narendra Modi, this fits into a bigger plan for growth that’s inclusive and eco-friendly. By easing costs for trips, stays, and cultural buys, India aims to charm more local explorers and overseas guests alike, while opening doors for artisans to thrive in new markets.


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