GST Reforms to Strengthen India’s Global Image as Inclusive, Vibrant, Culturally Rich Destination: Govt
The government’s GST reforms are designed to balance affordability, cultural preservation, and sustainability.
New Delhi, September 23: The Government of India has announced major rationalization of Goods and Services Tax (GST) rates aimed at making tourism more affordable, boosting public transport, and supporting artisans and cultural industries. The move is expected to create jobs, attract investment, and accelerate post-pandemic recovery in the hospitality and tourism ecosystem.
Key GST Reductions
- Hotels under ₹7,500/day: GST cut from 12% to 5% (without ITC), making stays more affordable for middle-class and budget travelers. This aligns India’s tax structure with global tourism destinations and is expected to increase domestic travel, pilgrimage tourism, and foreign tourist inflows.
- Buses with seating capacity of 10+ persons: GST reduced from 28% to 18%, lowering upfront costs for fleet operators, schools, corporates, and state undertakings. The measure is likely to reduce fares, improve public transport affordability, and encourage a shift from private vehicles to shared transport, helping curb congestion and emissions.
- Art and cultural goods: GST on statues, statuettes, engravings, prints, lithographs, ornamental articles, and stone inlay work reduced from 12% to 5%, directly benefitting artisans, craftsmen, and sculptors. The reform supports traditional cottage industries and helps preserve temple art, folk traditions, miniature painting, and stone craftsmanship.
Impact on Tourism and Culture
Foreign Tourist Arrivals (FTAs) in India surged from 15.27 lakh in 2021 to 99.52 lakh in 2024, reflecting a strong revival post-pandemic. The government expects that GST reductions will further enhance this trend by making India more competitive as a global tourism destination.
The reforms also align with the Ministry of Culture’s initiatives to digitize and globally showcase India’s heritage while supporting artisans and cultural institutions.
Expected Outcomes
- Tourism Boost: Greater affordability in travel and accommodation will expand both domestic and foreign inflows.
- Job Creation: New employment opportunities in hospitality, transport, and artisan sectors.
- Cultural Preservation: Enhanced economic viability for traditional art forms.
- Sustainability: Wider use of public transport, reducing emissions and easing congestion.
The government’s GST reforms are designed to balance affordability, cultural preservation, and sustainability. By supporting both travelers and craftsmen, these changes are poised to strengthen India’s global image as an inclusive, vibrant, and culturally rich destination, a government release said.
