Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

Travel Agents See New Opportunities and Challenges in GST Reforms: Jyoti Mayal

By Hariharan U

Published on September 8, 2025

The recent GST reforms announced at the 56th GST Council meeting are set to reshape India’s travel and tourism industry, placing travel agents at the intersection of new opportunities and emerging challenges.

For hotel accommodation priced up to ₹7,500 per day, the GST rate has been reduced from 12% with input tax credit (ITC) to 5% without ITC. While this makes travel more affordable for consumers, travel agents lose ITC benefits, potentially compressing margins.

In non-economy class air travel, the GST rate has increased from 12% with ITC to 18% with ITC. This change raises fares for business travelers but ensures agencies serving corporate clients can still claim full ITC, aiding cash flow management.

One of the most significant developments is the amendment of Section 13(8)(b) of the IGST Act, which now allows services provided by travel agents and tour operators to foreign clients to qualify as exports. This recognition enables agencies to avail zero-rated benefits under GST, including refunds of input tax credit, while also strengthening their global competitiveness.

The motor vehicle transport sector has also seen changes. The GST rate remains at 5% without ITC, but for those opting for full ITC, it has risen from 12% to 18%, requiring agencies to evaluate their business models carefully.

Commenting on the reforms, Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council, said,“The latest GST reforms bring both relief and responsibility for travel agents. On one hand, reduced hotel tariffs will stimulate demand in the domestic tourism segment. On the other, the removal of ITC in this category will require agents to realign their pricing strategies. Most importantly, the recognition of intermediary services as exports is a game-changer, unlocking opportunities for Indian travel businesses to expand their global footprint while enjoying the benefits of zero-rated taxation. Luxury travel is as important and needs to be promoted more, as the returns are higher, spends are higher, and it is exclusive. India needs to focus on inbound luxury tourism to stay competitive with neighbouring countries”.

As the sector adapts, the focus will be on balancing affordability with sustainable business models, ensuring Indian travel agents remain competitive in both domestic and international markets.


17 Injured After Air India Phuket–Delhi Flight Encounters Turbulence

17 Injured After Air India Phuket–Delhi Flight Encounters Turbulence

By Manu Vardhan Kannan

Published on August 5, 2026

Air India Flight AI2379, operating from Phuket to Delhi, encountered severe turbulence during its journey on Tuesday, leaving 17 people injured, including 13 passengers and four cabin crew members. Despite the incident, the aircraft landed safely at Indira Gandhi International Airport, Delhi, where medical teams were immediately deployed to assist those onboard.

The flight, operated by an Airbus A320 (VT-EXO), was carrying 137 passengers, including three infants, along with eight crew members comprising two pilots and six cabin crew.

According to Air India, the aircraft experienced a momentary change in altitude during the cruise phase before stabilising and continuing its journey safely to Delhi. Flight tracking platform Flightradar24 indicated that the aircraft descended by approximately 300 feet around 2.5 hours into the flight, while flying over Odisha.

Following the landing, medical teams attended to all passengers and crew as a precaution. Eight passengers and four cabin crew members were admitted to hospitals for detailed medical evaluation and treatment. Air India stated that all those admitted are stable and are receiving appropriate medical care, while the remaining passengers were provided with the necessary assistance and support.

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The Minister of Civil Aviation, Kinjarapu Ram Mohan Naidu, personally visited the injured passengers at Fortis and Medanta Hospitals to enquire about their condition and assure them of the government's full support. Senior officials from the Ministry of Civil Aviation also visited the hospitals and are coordinating closely with the airline and hospital authorities to ensure the injured receive the best possible medical care.

The aircraft has since been moved to the hangar, where the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) have been secured for detailed examination.

The Directorate General of Civil Aviation (DGCA) has initiated a comprehensive investigation into the incident. The Ministry of Civil Aviation and DGCA said they are closely monitoring the situation, reiterating that passenger safety remains the highest priority and that all necessary measures are being taken.


Bikanervala to Open New Outlet at SPS Realty's Helios in Zirakpur

Bikanervala to Open New Outlet at SPS Realty's Helios in Zirakpur

By Manu Vardhan Kannan

Published on August 3, 2026

SPS Realty has announced that Bikanervala, one of India's most recognised food and sweets brands, will open a new outlet at its flagship commercial development, Helios, located on VIP Road in Zirakpur. The addition is set to strengthen the project's retail and food & beverage ecosystem while enhancing its appeal as a lifestyle destination.

The upcoming outlet will offer Bikanervala's wide range of traditional Indian sweets, snacks, and dining options, catering to residents, businesses, and visitors from Zirakpur and nearby areas. The brand's presence is expected to serve as a key food and beverage anchor within the commercial development.

Commenting on the association, Rohit Singla, Director, SPS Realty, said, "The addition of Bikanervala at Helios reflects our vision of creating a well-rounded commercial destination that brings together premium retail, food, and lifestyle experiences. We aim to curate a diverse ecosystem where businesses can thrive while offering visitors a complete experience under one roof."

Helios has been designed as SPS Realty's flagship commercial project, featuring contemporary architecture, premium commercial spaces, and a strategic location on VIP Road. The development comprises 177 premium retail and showroom spaces, offering high-visibility opportunities for established brands, entrepreneurs, and businesses.

The arrival of Bikanervala is expected to further strengthen Helios' growing tenant mix while enhancing customer engagement by adding a well-established food and beverage destination. With increasing urbanisation and rising demand for organised retail spaces in the region, the project is positioned to emerge as a preferred commercial hub in Zirakpur.

Through this partnership, SPS Realty continues its focus on developing commercial destinations that combine retail, dining, and lifestyle experiences while creating new opportunities for businesses and consumers alike.


McDonald's India – North and East Crosses 200 McCafé Outlets, Partners with Tara Sutaria

McDonald's India – North and East Crosses 200 McCafé Outlets, Partners with Tara Sutaria

By Hariharan U

Published on August 3, 2026

McDonald's India – North and East has announced the expansion of its McCafé network to 200 outlets across North and East India, marking a significant milestone in the brand's coffee business. The expansion reflects the company's continued investment in making premium-quality coffee more accessible as India's café culture continues to evolve.

To commemorate the milestone, McDonald's India – North and East has partnered with Tara Sutaria as the face of McCafé, bringing its "Good Vibes Start with McCafe" platform to life through a new brand campaign celebrating everyday coffee moments and connections.

As part of the celebration, McCafé has also introduced a new Summer Range featuring Strawberry Matcha, Affogato, Salted Caramel Latte, Chai Latte, and Passion Fruit Cooler, expanding its beverage portfolio with refreshing and indulgent options designed for evolving consumer preferences.

Commenting on the milestone, Anant Agarwal, Vice-Chairperson, CPRL (McDonald's India – North and East), said, "At McCafé, our ambition is to build one of India's most loved and trusted coffee brands by making great coffee accessible to more consumers without compromising on quality or value. The milestone of 200 McCafé outlets reflects our continued investment in expanding our footprint and strengthening our beverage portfolio. As coffee culture continues to evolve in India, our refreshed 'Good Vibes Start with McCafe' platform, along with our collaboration with Tara Sutaria as the face of McCafé, reinforces our commitment to connecting with young consumers and making McCafé their preferred choice for everyday coffee occasions."

Sharing her thoughts on the association, Tara Sutaria said, "Coffee has always been an important part of my everyday routine, whether it's the first cup that starts my day, a mid-day pick-me-up or a quiet moment to unwind. Over the years, McCafé has become one of my go-to choices, whether I'm in India or travelling abroad, because I know I can always count on a great cup of coffee. McCafé's Cappuccino is one of my personal favourites whenever I'm looking for something indulgent. I'm delighted to be associated with a brand that shares my love for great coffee and celebrates the everyday rituals that make each cup special."

The new summer beverage range is now available across McCafé outlets in North and East India. Customers can also order through dine-in, Self-Ordering Kiosks (SOK), takeaway, drive-thru, delivery platforms, and the McDonald's App.

The campaign has been conceptualised by BBDO India, part of Omnicom Advertising India.

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