Hospitality Professionals Welcome Indian Government’s Reform on GST Revenue

Hospitality Professionals Welcome Indian Government’s Reform on GST Revenue

By Manu Vardhan Kannan

Published on September 6, 2025

Hospitality professionals across India have welcomed the Indian Government’s new GST revenue reforms, viewing the move as a progressive step that will benefit both businesses and customers. The reforms are expected to simplify taxation, create a more transparent system, and improve compliance across the sector.

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Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts says

"The GST overhaul marks a turning point for India's hospitality sector. By reducing GST on hotel stays under ₹7,500 to 5%, the government has effectively democratised travel. This will boost domestic tourism, encourage corporate travel to tier-2 and tier-3 cities, and improve occupancy for mid-scale hotels, which form the backbone of our industry. However, luxury hotels remain at 18%, which keeps India aligned with global practices, where premium stays are taxed at a higher rate. The challenge will be balancing this benefit with the loss of input tax credit (ITC), which could compress margins for some operators. Overall, the move signals a clear policy direction, making travel more affordable and inclusive, while still protecting the exclusivity of luxury experiences."

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Mr. Sumit Mitruka, CEO and founder, Summit Hotels & Resorts shares that, "The reforms announced at the 56th GST Council are far more than a matter of taxation; they represent a structural reset in the way India approaches housing, travel, and consumption. By placing mid-scale hotel accommodation within the 5% bracket, the government has significantly broadened affordability in domestic tourism, ensuring that demand in emerging destinations can flourish. At the same time, the simplification of GST for residential real estate,  through reduced construction costs and clearer slab structures, is poised to stimulate housing supply and bolster confidence, particularly across tier-II and tier-III cities.

Hospitality and real estate are inextricably linked: affordable housing underpins urban growth, whilst accessible travel fuels mobility and commerce. A streamlined GST regime allows these sectors to reinforce one another, creating a powerful multiplier effect on employment, consumption, and investment. The task before industry leaders now is to harness these efficiencies and translate them into greater value not only for guests and homeowners, but for the wider economy."

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Rasmi Ranjan, Director of Operations, Monday Hotels shares that, "This is a fantastic step. It's a win-win situation where guests get more value for their money, and we can attract a larger number of travelers. The lower GST will make a significant difference for people planning trips, especially in the budget and mid-market segments. At Monday Hotels, we're excited about this move as it allows us to offer even more affordable and memorable experiences to our guests, reinforcing our commitment to delivering value without compromising on comfort and service."

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Mr. Ritwik Khare, Founder & CEO of ELIVAAS says “The government’s decision to revise GST into a simplified two-slab structure is a very welcome move for the hospitality industry. By reducing tariffs up to ₹7,500 to 5%, the reform eliminates the earlier complexity of multiple brackets and creates a transparent and guest-friendly ecosystem. The current reduction in GST for hotels and flights will also make premium hospitality more accessible to a larger section of society, strengthening India’s competitiveness as a tourism destination. We truly appreciate the structured clarity brought in by the government through this reform.

From a tourism standpoint, India has fantastic offerings, and this step will not only boost domestic and inbound travel but also unlock the sector’s wider economic potential. Tourism already contributes nearly 5% to India’s GDP, and with continued reforms and the rise of new formats, it has the potential to cross 6% in the coming years. The industry also holds immense potential for large-scale job creation and revenue generation. Importantly, new segments like villas, apartments and suites are emerging as powerful drivers of this growth, creating fresh revenue pools and employment opportunities deep inside India, beyond the traditional hotel hubs.

At ELIVAAS, our focus on villas, apartments and suites is aligned with this evolving demand, catering to travellers who value privacy, comfort, and curated experiences. With a simplified GST framework, the guest journey becomes smoother, encouraging greater adoption of such premium yet accessible travel formats.”

The initiative reflects the government’s focus on improving the ease of doing business while supporting industries that significantly contribute to employment and economic growth, which is also favourable for the hospitality industry.


Aditya Birla Housing Finance Expands Delhi Presence with Shahdara Branch

Aditya Birla Housing Finance Expands Delhi Presence with Shahdara Branch

By Hariharan U

Published on June 30, 2026

Aditya Birla Housing Finance Limited (ABHFL), a subsidiary of Aditya Birla Capital Limited, has expanded its presence in New Delhi with the launch of a new branch in Shahdara. With this addition, the company now operates four branches in the capital, strengthening its distribution network in one of India’s key housing finance markets.

Shahdara, a well-connected and steadily developing residential locality, continues to witness consistent housing demand supported by strong metro and rail connectivity and proximity to key commercial hubs across Delhi and the NCR region. ABHFL’s new branch aims to improve accessibility to tailored housing finance solutions for homebuyers in the area.

The company offers a wide range of housing finance products including affordable housing loans, prime housing loans, construction finance, and loans against property. These services cater to salaried individuals, self-employed professionals, and emerging income groups, supported by a digital-first onboarding system that enables faster approvals and improved transparency.

To mark the launch, ABHFL has introduced a limited-period offer featuring zero login fees along with spot loan sanctions of up to ₹50 lakh. The offer is valid from June 24 to June 30, 2026, and is designed to encourage quicker and more affordable access to home financing.

Speaking on the expansion, Pankaj Gadgil, MD & CEO of Aditya Birla Housing Finance Limited, said that New Delhi remains a key growth market for the company. He added that ABHFL is focused on deepening customer engagement by combining its expanding physical presence with strong digital capabilities to simplify the home loan journey.

The expansion aligns with ABHFL’s broader strategy of strengthening its retail lending portfolio while promoting financial inclusion and delivering a smoother, customer-centric “Happy Home Loan Journey” for borrowers across India.


Ginger Strengthens Presence with New Hotels in Siwan and Agra

Ginger Strengthens Presence with New Hotels in Siwan and Agra

By Manu Vardhan Kannan

Published on June 30, 2026

Indian Hotels Company (IHCL), India's largest hospitality company, has expanded the footprint of its Ginger brand with the opening of Ginger Siwan, Chapra Road in Bihar and Ginger Agra Fatehabad Road in Agra.

Commenting on the expansion, Ms. Deepika Rao, Executive Vice President – Hotel Openings & New Businesses, IHCL, said, "With the launch of Ginger hotels in Siwan and Agra, Ginger continues to strengthen its presence across India’s commercial and cultural cities. Siwan is rapidly emerging as a center for trade and commerce in Bihar, while Agra remains one of the country’s most iconic tourist destinations with strong demand from both domestic. The openings of Ginger Siwan and Ginger Agra reflect our strategy to expand in high-potential markets."

Located on Fatehabad Road, Ginger Agra Fatehabad Road features 70 keys, offering modern amenities and cityscape views. Guests can dine at Qmin, Ginger's signature in-house restaurant, which serves a selection of Indian, Mughlai and international cuisine. The hotel also includes a bar, providing a space for guests to relax and socialise.

In Bihar, Ginger Siwan, Chapra Road offers 30 keys designed for convenience, comfort and hassle-free stays. The hotel also features Qmin, the brand's all-day dining restaurant, serving a mix of local favourites and international dishes.

Both Ginger Siwan and Ginger Agra Fatehabad Road are equipped with banquet halls and meeting venues, making them suitable for corporate events as well as social gatherings.


Eight Continents Expands India Presence with Hanric Launch in Varkala

Eight Continents Expands India Presence with Hanric Launch in Varkala

By Manu Vardhan Kannan

Published on June 30, 2026

Eight Continents Hotels & Resorts, the UK-based luxury hospitality and hotel management group, has announced the launch of Hanric, Varkala, further expanding the Hanric by Eight Continents brand in India. The new property marks another step in the group's strategy to strengthen its presence across high-potential travel destinations while growing its experiential hospitality portfolio in the country.

Located in the heart of Varkala, the hotel has been designed to reflect the destination's unique coastal charm while offering guests a contemporary and comfortable stay. Known for its scenic cliffside views, beautiful beaches, vibrant local culture and rising popularity as a wellness destination, Varkala continues to attract travellers looking for a mix of relaxation, exploration and authentic experiences.

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Hanric, Varkala features 32 well-appointed rooms, along with a restaurant, bar and banquet facilities, making it suitable for leisure stays, intimate celebrations and social gatherings. Blending modern comforts with warm hospitality, the property offers guests an ideal base to explore Kerala's picturesque coastline.

Eight Continents Hotels & Resorts will manage the property by drawing on its expertise in delivering personalised guest experiences, operational excellence and destination-led hospitality. The company aims to establish Hanric, Varkala as a preferred stay option for visitors to the region.

Commenting on the launch, Ms. Richa Adhia, Managing Director, Eight Continents Hotels & Resorts, said, "The launch of Hanric, Varkala marks an important milestone in the growth of the Hanric by Eight Continents brand. Varkala's growing popularity as a coastal getaway makes it a natural fit for our vision of creating distinctive hospitality experiences rooted in place and culture. Through this property, we aim to offer travellers an authentic connection to the destination while further strengthening our presence in India's growing experiential hospitality landscape."

The launch reflects the group's continued focus on expanding in destinations with strong tourism potential and increasing demand for experience-led travel. Eight Continents Hotels & Resorts currently operates a diverse portfolio of brands, including Treetop, Hanric, Stamps, Ocho Homes and Signature Collection, across India, the United Kingdom and East Africa. Its growing presence includes destinations such as Belfast, Guernsey, Zanzibar, Kasauli, Udaipur, Sariska, Jodhpur, Pushkar and Varkala, highlighting the group's commitment to building a design-led hospitality portfolio across emerging and established travel markets.

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