The recent decisions of the GST Council are set to give India’s travel and hospitality industry a strong festive-season push, according to Mr. Ankit Pathak, Chief Finance Officer of Ebix Travels.

Welcoming the move, Mr. Pathak highlighted that bringing hotel tariffs of up to ₹7,500 under the 5% GST slab will encourage more travellers to explore destinations, especially during the upcoming festive and wedding season, when demand typically peaks.

He further noted that continuing a lower 5% GST on economy air tickets ensures affordability for mass travellers – a critical factor for sustaining growth in domestic tourism.

“While the upward revision for non-economy tickets may slightly impact premium travel costs, the overall framework reflects a balanced approach,” said Pathak. “These reforms will drive higher occupancy, increase travel frequency, and strengthen India’s position as one of the world’s fastest-growing travel markets.”

The Council aims to boost demand, improve accessibility, and increase revenues throughout the tourism sector.

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