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.

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."

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."

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."

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.