India has reduced GST rates on hotel rooms and buses from September 22. The government expects the move will make travel more affordable, encourage tourism, create jobs, and attract investment.

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• GST on hotel rooms under ₹7,500/day cut from 12% to 5%
• GST on buses seating over 10 people reduced from 28% to 18%
• Lower hotel taxes to help middle-class, budget travelers
• Cheaper stays to attract more foreign tourists to India
• Tourism recovery strong: FTAs rose from 15.27 lakh in 2021 to 99.52 lakh in 2024
• Reform to boost pilgrimage, heritage, and eco-tourism circuits
• More demand for mid-range hotels, homestays, guesthouses
• Investment expected in hospitality, creating jobs and infrastructure growth
• Bus tax cut to lower fares on rural and semi-urban routes
• Cheaper buses to push public transport use, cut congestion and pollution