Key Panel Okays GST 2.0: Two-Slab Overhaul to Boost Growth, Hotels Get Cheaper

Key Panel Okays GST 2.0: Two-Slab Overhaul to Boost Growth, Hotels Get Cheaper

By Manu Vardhan Kannan

Published on August 22, 2025

India is preparing to implement its most significant tax reform since the introduction of the Goods and Services Tax (GST) in 2017, with a key panel of ministers approving a shift to a simplified two-slab system. The new structure will feature two primary rates of 5% and 18%, with a special 40% levy on sin and luxury goods, scrapping the existing 12% and 28% brackets. The GST Council is expected to meet in early September to fast-track implementation. The reform comes against the backdrop of rising trade tensions with the United States, where steep tariffs have been imposed on Indian goods. During Independence day celebrations, Prime Minister Narendra Modi announced sweeping tax reforms to support the economy and now this move confirmed that India will reduce GST rates to stimulate consumption and growth. Almost 99% of items currently in the 12% bracket, including butter, fruit juices, and dry fruits, will be moved to the 5% category, a move that will directly benefit consumers as well as FMCG giants such as Nestle, Hindustan Unilever, and Procter & Gamble. However, this simplification could result in a revenue loss of nearly ₹500 billion, equivalent to 0.15% of GDP, sparking concern among states over potential fiscal shortfalls. The Department of Revenue is currently assessing the full impact before final approval.

For the hospitality sector, which has long grappled with a complex GST regime, the overhaul will provide major relief. Hotel stays below ₹7,500 per night will see GST reduced from 12% to 5%, making mid-range and budget accommodations significantly cheaper for travelers. Restaurant services in such hotels will also attract only 5% GST without input tax credit, while hotels that wish to claim credit may continue with the 18% rate. Complimentary breakfasts, packaged food, toiletries, and other daily essentials supplied by hotels will be taxed at 5%, further reducing costs. The simplification of slabs is also expected to make billing easier and reduce confusion for both hotels and guests. Luxury hotels charging above ₹7,500 per night will remain in the 18% bracket, keeping high-end stays unchanged in price, while alcohol, tobacco, and luxury add-ons offered through hotels will shift from 28% to 40%, becoming significantly costlier.

Economists note that the new GST framework could provide households with a stimulus equivalent to 0.6–0.7% of GDP, driven by lower taxation on essentials and services. For the hospitality industry, the changes are likely to boost domestic tourism, increase occupancy in budget and mid-tier hotels, and make restaurant dining in affordable hotels cheaper, while high-end travelers see little relief. At a broader level, the reform reflects India’s push to stimulate demand, simplify compliance, and strengthen domestic consumption while managing revenue risks for states. In doing so, GST 2.0 promises to be a transformative step for both the economy and the hospitality industry, balancing affordability for consumers with the government’s long-term goal of sustainable growth.


Air India and Air Astana Sign Codeshare Agreement to Strengthen India–Kazakhstan Connectivity

Air India and Air Astana Sign Codeshare Agreement to Strengthen India–Kazakhstan Connectivity

By Manu Vardhan Kannan

Published on September 12, 2025

Air India, India’s leading global airline, and Air Astana, the flag carrier of Kazakhstan, have announced a new codeshare agreement to expand flight options and connectivity for travellers between India and Kazakhstan.

Under this partnership, Air India will place its ‘AI’ designator code on Air Astana’s flights between Almaty and Delhi, and Almaty and Mumbai. This enables Air India passengers to conveniently book single tickets and enjoy through check-in for their journey to Almaty, a fast-growing hub for both tourism and business in Central Asia.

Speaking on the announcement, Campbell Wilson, Chief Executive Officer & Managing Director of Air India, said:

“Our new codeshare partnership with Air Astana creates stronger air links to Kazakhstan, a fast-growing market with immense potential for tourism. Beyond serving leisure travel demand, our partnership will also support trade and cultural exchanges between our two countries, while bringing a new destination in Central Asia closer to our customers.”

Peter Foster, CEO of Air Astana Group, shared:

“We are delighted to have concluded a comprehensive codeshare agreement with Asia’s oldest airline. Air India is an exceptionally well-managed business, which operates a comprehensive network of flights to, from and across India, the world’s most populous country and one of the fastest growing travel markets. India is of key strategic importance to the Air Astana Group as we increase flights from Kazakhstan to Delhi, Mumbai and Goa. The codeshare will accelerate the increasingly strong business, tourist and student traffic flows between our two countries.”

The agreement builds upon an interline partnership signed earlier in 2025, under which Air India passengers already had access to destinations across Central Asia and China via Almaty, including Astana, Bishkek, Tashkent, Dushanbe, and Urumqi. Meanwhile, Air Astana customers gained access to 18 domestic and 9 international destinations through Air India’s network.

With this codeshare step-up, passengers will benefit from greater convenience, a wider destination network, and simplified travel through a single booking and check-in process. Subject to regulatory approvals, the codeshare flights will gradually be made available for booking across Air India’s website, mobile app, and travel agents worldwide.


Where to Go for the Perfect Date Night in Mumbai– From Rooftop Romance to Cozy Pizzerias

Where to Go for the Perfect Date Night in Mumbai– From Rooftop Romance to Cozy Pizzerias

By Hariharan U

Published on September 12, 2025

Mumbai’s dining scene offers no shortage of options, but when it comes to a perfect date night, not every place makes the cut. Whether you’re planning an indulgent evening under the stars, a cozy night at home, or a casual pizza-and-wine kind of outing, here are four standout spots to add to your list.

1. Mirage, Bandra – Rooftop Romance with a Touch of Fantasy

Step into Mirage, Bandra’s newest rooftop stunner, where dining is elevated into a cinematic experience. Curated by internationally celebrated chefs Bobby Recto and Maher Ramzi, the menu brings together bold Euro-Asian and Levantine flavours—think smoked lamb hummus, gold-dusted maki rolls, braised lamb shank, and pistachio kunafa crema.

Designed by Sumessh Menon, Mirage shimmers with reflective surfaces, dramatic lighting, and sweeping skyline views. Add artful cocktails like the Wasabi Punch or Medusa’s Eye, and live music that sets the tone, and you’ve got yourself the perfect setting for a romantic night out.

2. The Pantry – A Healthy Date Night at Home

image

For couples who prefer staying in but still want a touch of indulgence, The Pantry delivers just that. Its all-new menu is designed around wholesome bowls, globally inspired salads, and wraps that balance nutrition with flavour.

Highlights include the Zen Soba Protein Bowl with miso-lime soba and tofu, the Moroccan Glow Bowl with harissa-grilled chicken, and the Mediterranean Muscle Bowl featuring muhammara, cauli-quinoa, and olive tapenade chicken. Seafood lovers can try Fish & Greens with kasundi mustard rawas.

Available on Swiggy and Zomato, The Pantry makes it easy to turn your dining table into the coziest date spot.

3. Si Nonna’s – Cozy Pizzeria Vibes

image

Authentic wood-fired sourdough pizzas make Si Nonna’s a natural pick for couples who love sharing slices. Whether you’re dining in at their intimate pizzeria or ordering in for a relaxed evening, Si Nonna’s brings Italy to Mumbai with bold, fresh flavours.

Must-tries include Pizza No. 3, topped with Fior di Latte, Kalamata olives, and capers, and Pizza No. 6, loaded with spiced chicken, sun-dried tomatoes, basil pesto, and homemade chilli oil. End the night with Nonna’s Famous Tiramisu and raise a toast with Nonna’s Cooler.

4. The BlueBop Café – Jazz, Comfort & Connection

image

With its warm interiors and jazz-infused ambience, BlueBop Café is ideal for couples seeking comfort and connection. The menu is designed for sharing—start with Mozzarella Cheese Sticks, Butter Garlic Prawns, or Truffle Chicken Popcorn before moving on to hearty mains like Mexican Chicken Sizzlers, Prawns in Red Thai Curry, or a Tenderloin Steak.

Round off the evening with a decadent Hazelnut Hot Chocolate or a freshly baked dessert. Here, every date night feels as intimate and laid-back as it is indulgent.

Whether you’re chasing rooftop sunsets, pizza nights, wholesome bowls at home, or jazz-filled evenings, these four spots prove that Mumbai knows how to make every date night unforgettable.


GST Rationalization and Hospitality Growth by Ruban Das

GST Rationalization and Hospitality Growth by Ruban Das

By Author

Published on September 10, 2025

"In the wake of India’s recent Goods and Services Tax rationalization, the accommodation landscape for discerning travelers remains largely unchanged at the premium end. The simplified tax structure, which reduces amplification of costs at the economy and mid-market tiers, preserves the existing 18 per cent levy on nightly stays exceeding ₹7,500. The tax overhaul eases burdens for mid-tier counterparts, potentially stimulating overall travel demand, a trend from which established operators naturally benefit for hotels up to ₹7,500 with a GST of 5% (without any input credit facility) from the existing 12% GST.

image

We urge the authorities to reconsider the GST structure for hotel-based dining outlets and align it with that of stand-alone fine dining restaurants. A uniform tax rate will ensure fair competition, healthier growth of the industry, and better value for consumers.
In essence, the GST evolution affirms our resolve: even as regulatory winds shift, our commitment to excellence remains steadfast. We continue to invest thoughtfully in staff training, amenity enhancement, and sustainable practices, confident that the regulatory bedrock affords us clarity—and the freedom—to elevate each guest’s experience with distinction and unwavering warmth."- Ruban Das, General Manager, Hyatt Regency Chennai Submission from Hyatt Regency, Chennai

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.