India's tourism growth story intact, more GST cuts on hotels, restaurants will help: SOTC Travel MD

Business To Business, New Delhi, 02 August, 2026:   Further rationalisation of the Goods and Services Tax (GST) on domestic hotels and restaurants could provide an additional boost to India's tourism sector, even as the country's travel market continues to expand amid global economic uncertainties, according to Vishal Suri.
Suri noted that lowering GST rates on hospitality services would make domestic travel more affordable, encourage higher tourist spending, and support the continued growth of the tourism industry.
The GST Council had already taken a significant step by reducing the GST rate on hotel rooms with tariffs of up to Rs 7,500 per night from 12 per cent to 5 per cent, without input tax credit (ITC), effective September 22 last year. The move was aimed at making accommodation more affordable and promoting tourism.
Suri also welcomed the government's decision to reduce the Tax Collected at Source (TCS) on overseas tour packages to a uniform 2 per cent, describing it as a positive measure that eases the tax burden on travellers and benefits the travel industry.
According to Suri, continued policy support through tax rationalisation and simplified regulations can further strengthen India's tourism sector by making both domestic and international travel more accessible and competitive.