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.


FitsAir Highlights Ahmedabad Colombo Connectivity Through Travel Trade Webinar

FitsAir Highlights Ahmedabad Colombo Connectivity Through Travel Trade Webinar

By Manu Vardhan Kannan

Published on August 26, 2026

FitsAir and Red Dot Representations recently brought the travel trade closer to Sri Lanka through an exclusive webinar focused on the airline’s new direct connectivity between Ahmedabad and Colombo.

Held on 21st August 2026, the webinar introduced travel partners to the new Ahmedabad–Colombo route and highlighted how the direct connection can make Sri Lanka easier to access for travellers from Gujarat, without the need for layovers.

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The session also explored Sri Lanka’s wider tourism offerings and its appeal across different traveller segments, including families, honeymooners and MICE groups. The destination’s beaches, cultural attractions, wildlife, hospitality and local experiences were among the key highlights.

The webinar went beyond the traditional beach holiday experience, showcasing the different ways Indian travellers can explore Sri Lanka. From spending time along its tropical coastline and discovering its cultural heritage to experiencing its wildlife, local cuisine and hospitality, the session presented the island as a destination with varied experiences.

FitsAir currently operates the Ahmedabad–Colombo service three times a week, giving travellers from Gujarat a more convenient direct option for reaching Sri Lanka. The improved connectivity is expected to support leisure travel, experiential holidays, MICE and destination celebrations, while strengthening Sri Lanka’s position as an accessible short-haul international destination for the Gujarat market.


IIHM Launches First Egg Bank in India to Support Underprivileged Communities

IIHM Launches First Egg Bank in India to Support Underprivileged Communities

By Hariharan U

Published on August 26, 2026

The International Institute of Hotel Management (IIHM) has launched its first Egg Bank in India in Bengaluru, introducing a sustained student-led initiative aimed at providing nutritional support to underprivileged and vulnerable communities.

As part of the launch, IIHM's students, known as Food Soldiers, distributed more than 700 eggs to visually impaired children at Sri Rakum School for the Blind. The initiative has been undertaken in association with the Valmiki Foundation and is designed to move beyond one-time food donations by creating an ongoing nutrition programme.

The IIHM Egg Bank will initially support identified beneficiary institutions in Bengaluru, with plans to progressively extend the programme to old-age homes, orphanages and other organisations serving underprivileged communities. The initiative will subsequently be expanded across IIHM campuses in India, with individual campuses identifying beneficiaries in their respective communities.

Speaking on the initiative, Dr. Suborno Bose, Founder & Chairman, IIHM, said, "As a leading hospitality education institution, our responsibility goes beyond creating successful professionals. Hospitality is fundamentally about caring for people. Through the IIHM Egg Bank, our Food Soldiers will help address nutritional deficiencies through meaningful action. We want our students to see CSR not as a one-time activity, but as a sustained responsibility towards the underprivileged."

Ms. Sanchari Chowdhury, Director, IIHM Bengaluru & Head-South Operations, said the initiative encourages students to contribute beyond the classroom and become active participants in community service. She described “One Child, One Egg, One Smile” as a reflection of IIHM's belief in sustained and empathetic community engagement.

The programme has been designed around regular distribution rather than a single donation drive. Since eggs are perishable, IIHM's Food Soldiers will undertake distributions twice every month, providing the required quantity for each fortnight. This approach is intended to ensure continuity while giving students an opportunity to engage directly with the communities they support.

The initiative also aligns with IIHM's broader commitment to the United Nations Sustainable Development Goals, particularly SDG 2 – Zero Hunger. Through its Food Soldiers programme, the institute has previously engaged students in activities focused on providing food and essential support to communities in need.

Dr. Valmiki Hari Kishan, Founder of the Egg Bank Project and Co-Founder & Project Director, Valmiki Foundation, said the Bengaluru initiative marks the 177th Egg Bank overall and the first under IIHM. He noted that the programme's expansion across IIHM campuses could help extend nutritional support to vulnerable communities in multiple cities.

The launch was attended by Mr. P. K. Mohan Kumar, Independent Director, Prestige Hospitality Ventures Limited, as Chief Guest. Speaking at the event, he highlighted the role of initiatives such as the Egg Bank in extending the spirit of hospitality into wider community service.

By combining the Valmiki Foundation's experience with IIHM's institutional network and student participation, the initiative aims to create a sustained model for nutritional support. Beginning with visually impaired children at Sri Rakum School for the Blind, the programme is expected to reach more underserved communities across Bengaluru and, subsequently, other cities through IIHM's campus network.


Eros Hotel New Delhi Strengthens Water Conservation Efforts During World Water Week

Eros Hotel New Delhi Strengthens Water Conservation Efforts During World Water Week

By Hariharan U

Published on August 25, 2026

Eros Hotel New Delhi is reinforcing its commitment to responsible water management during World Water Week 2026 by highlighting a range of initiatives focused on reducing water consumption, promoting mindful usage and recycling wastewater across its operations.

Organised annually by the Stockholm International Water Institute (SIWI), World Water Week brings global attention to water-related challenges and the importance of responsible water management. The 2026 edition is being held from 23 to 27 August.

At Eros Hotel New Delhi, water conservation has been integrated across guest areas, kitchens, back-of-house operations and public facilities through a combination of water-efficient infrastructure and awareness initiatives.

The hotel has installed water-saving aerators across taps in guest room washrooms, kitchens and back-of-house areas to regulate water flow and improve consumption efficiency. Public washrooms feature sensor-operated taps, helping reduce unnecessary water usage, while guest rooms are equipped with dual-flush WC cisterns that allow guests to use water according to requirements.

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The hotel's sustainability approach also focuses on creating greater awareness among guests and employees. Water conservation tent cards placed in guest rooms encourage visitors to adopt mindful water-use practices during their stay. Awareness posters across kitchens and back-of-house areas further reinforce responsible water consumption among employees and operational teams.

A key element of Eros Hotel New Delhi's water management strategy is the 100% recycling of wastewater. Treated recycled water is utilised for horticulture and cooling towers, reducing the hotel's dependence on fresh water for selected operational requirements while ensuring wastewater is put to productive use.

By combining water-efficient fixtures, wastewater recycling and awareness programmes, Eros Hotel New Delhi continues to integrate resource-conscious practices into its daily operations.

The initiatives reflect the hotel's broader approach to making water conservation a shared responsibility among guests, employees and operational teams while strengthening its ongoing sustainability efforts.

About Eros Hotel New Delhi:

Eros Hotel New Delhi is a luxury hotel located in the heart of the city, offering accommodation, dining and hospitality facilities for leisure and business travellers.

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