New Delhi, Sep 22 (NationPress) The newly adjusted GST rates, effective from Monday, are set to make the nation's tourism industry more economical, encourage the use of public transportation, and bolster support for artisans and cultural sectors, according to government officials.

This month, the GST Council made significant changes, lowering the GST on hotels priced under Rs 7,500 per day from 12 percent to 5 percent (without ITC). Additionally, the GST on buses accommodating over 10 passengers has been cut from 28 percent to 18 percent. Furthermore, the GST on art and cultural goods has also been reduced from 12 percent to 5 percent.

“These reductions will fortify the domestic tourism framework, promote cultural heritage, and stimulate investments in related sectors,” stated an official announcement.

“Under PM Modi’s leadership, these reforms reflect a commitment to sustainable and inclusive development, fostering job creation and investments in hospitality, transportation, and traditional crafts, while also aiding the recovery of India’s tourism sector post-pandemic,” it further noted.

The revised GST rates for hotels are anticipated to make accommodations more affordable for middle-class and budget travelers, positioning India’s hospitality tax framework on par with global tourist destinations and enhancing its appeal to international visitors.

This initiative is also projected to stimulate weekend getaways, pilgrimage circuits, heritage tourism, and eco-tourism, while encouraging investments in new mid-range hotels, homestays, and guesthouses, thereby creating jobs and improving infrastructure.

The revised GST for buses will lower the initial costs for buses and minibuses, making them more attainable for fleet operators, educational institutions, corporations, tour providers, and state transport agencies.

This change is expected to reduce ticket prices, particularly on semi-urban and rural routes, encouraging a transition from private vehicles to shared or public transport, thereby alleviating congestion and pollution.

Moreover, it will facilitate fleet expansion and modernization, enhancing comfort and safety standards within public transport.

In addition, the GST decrease on art and cultural goods, which encompasses statues, statuettes, original engravings, prints, lithographs, decorative articles, stone artware, and stone inlay work, will provide direct assistance to artisans, craftsmen, and sculptors.

This will also contribute to the preservation of living traditions in temple art, folk expression, miniature painting, printmaking, and stone craftsmanship, while globally promoting Indian culture and craftsmanship, thereby integrating the heritage economy with modern markets, according to the government.

“These GST reductions signify a strategic initiative by the government to enhance India’s tourism and cultural sectors by improving affordability, supporting traditional artisans, and fostering sustainable transportation,” the official statement elaborated.

“By enhancing accessibility and preserving cultural heritage, these measures are expected to yield substantial economic growth, generate employment, and elevate India’s reputation globally as a vibrant and inclusive destination,” it concluded.