&imwidth=800&imheight=600&format=webp&quality=medium "Flight tickets to hotel stay: Both cheaper and expensive. Here's what has changed in new GST slab")
If you find solace in travelling, the recent change in GST may concern you. For those who don’t get excited by the thought of travel, you may still have to indulge for work. So, this may still concern you. With that, we are looking at how your accommodation may be affected once the changes are implemented. On Wednesday (September 3), Finance Minister Nirmala Sitharaman, in a briefing, mentioned big reforms that will change the tax slabs. This comes a fortnight after PM Narendra Modi assured the nation from the ramparts of the Red Fort, on Independence Day, of a big Diwali bonanza with regard to GST. All the changes will be implemented September 22 onwards.
How will air tickets be impacted?
The GST Council’s decision on air travel will not affect economy class flight tickets as taxes are maintained at 5%. It remains the same, so be assured nothing is burning a hole in your pocket or pushing your vacation budget off the cliff. But if you are looking at an upgrade, i.e. the business class then there is an extra 6% GST, which will increase the existing 12% GST to 18%.
It means that business class air tickets are likely to become expensive, and you may see an increase in prices.
Trending Stories
)
US missiles strike near Iran children's cancer hospital; mass evacuations underway
&im=FitAndFill=(700,400))
How much does a single S-400 missile cost?
)
Bangladesh seizes $6.2 billion in assets linked to Sheikh Hasina amid return speculation
)
Argentina's racism problem: How football chants reflect a deeper historical legacy
)
'Are you Muslim?': Indian man stabbed 15 times in US after being asked about religion
)
Amid spate of resignations at ISRO, Govt places curbs on quitters
&im=FitAndFill=(700,400))
Why does the B-52 bomber still use eight engines?
)
'Every life is precious': Delhi HC delivers BIG order on Sonam Wangchuk, tells Indian govt to monitor his health
)
Video shows cargo ship that left India sinking in Strait of Hormuz, link with war unclear
)
Lebanon arrests alleged Israeli spy accused of betraying, exposing Hezbollah leaders
)
Americans need to prove they are American citizens to visit a national park in US
)
Why Sheikh Hasina wants to return to Bangladesh despite death sentence —and what it means for India | WION Decodes
How many missiles does one S-400 have?
)
'Monster fish' 20 times their original size are swarming Scottish lochs
)
'We screwed up...': JD Vance admits Trump administration botched Epstein files release
&im=FitAndFill=(700,400))
Why are the B-52 bomber's tyres different from those on most aircraft?
)
Matchbox miracle: Telangana weaver gifts 5.5-metre silk saree that fits inside a matchbox to Goddess Bharamaraba at Srisailam temple | VIDEO
)
Bihar man visits bank to withdraw Rs 1100, finds Rs 7596951951 in his account - What happened next
)
Balochistan independence movement grows | Activist claims Pak has lost control over 85% territory
)
Nine flights declare squawk 7700 emergency over Gatwick Airport - Details
&im=FitAndFill=(700,400))
iPhone 18 Pro vs iPhone 17 Pro: Is it worth the upgrade?
)
'Alien chemistry' discovered in meteorite that crashed into a New Jersey bedroom
)
BREAKING: Massive earthquake jolts tourist hotspot in New Zealand, tsunami warning issued
)
'I am strong...': Sonam Wangchuk breaks silence as health deteriorates; Cong's Shashi Tharoor urges him to end fast
)
'Where is he?': US flags at half-mast day after Trump's sudden hospital visit sparks speculations: Real reason is...
)
‘Justice has finally been served': Meloni reacts as Italy's apex court upholds life sentences in Saman Abbas honour killing case
&im=FitAndFill=(700,400))
Sonam Wangchuk's hunger strike enters 18th day: Anurag Kashyap, Omi Vaidya, Swara Bhaskar and other celebrities extend support to the activist
&im=FitAndFill=(700,400))
'He may die...': Delhi HC wants Indian govt's response in plea seeking to 'force-feed' Sonam Wangchuk; BIG hearing today
&im=FitAndFill=(700,400))
Why Russian fighter jets leave exhaust pipes raw compared to US jets
)
Ukrainian drone travels 2,500 km in 12 hours to attack oil refinery in Siberia, as CIA confirms 30-minute soldier lifespan
Breakdown:
Airfare
Economy class ticket – 5% GST (unchanged)
Business class ticket – 18% GST
Will the cost of hotel accommodation be impacted?
One of the most important decisions to be made while planning a vacation is the billion-dollar question: where are we staying? Though location and itinerary win here, as it takes the apex position in the scheme of things. Despite being second in line, stay makes or breaks a plan. Let’s see what changes have been made on this front.
An accommodation which costs lesser than INR 1,000 will have no taxes levied. Any stay that costs between INR 1,001 and INR 7,500 will attract a 5% GST without ITC (Input Tax Credit), which was earlier at 12% GST with ITC. A room tariff over INR 7,500 per night will have 18% GST added to the bill.
The GST release says, “Reduction of GST from 12% to 5% on ‘hotel accommodation’ services having value less than or equal to Rs. 7,500 per unit per day or equivalent.”
Breakdown:
Room tariff per night
Up to INR 1,000 - No GST
INR 1,001 – INR 7,500 - 5% GST (without ITC)
Above INR 7,500 -18% GST (unchanged)
The crux: According to the details released by the GST Council, premium services and goods will attract a higher GST, which is otherwise relaxed for other components mentioned in the list.
