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GST cut makes festive travel lighter on the pocket

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Just ahead of the festive and wedding season, the Goods and Services Tax (GST) Council has rolled out a reform that promises to make hotel stays and air travel lighter on the pocket for Indian travellers.

For travellers, it means that holidays will now be a little easier on the wallet(Photo: Adobe Stock)

In its 56th meeting, chaired by Finance Minister Nirmala Sitharaman, the council announced reductions in GST rates on hotels and airline tickets, changes that will come into effect on September 22, 2025.

For travellers, it means that holidays will now be a little easier on the wallet. Hotel rooms priced at or below 7,500 per night will now attract only 5% GST, down from the earlier 12%, though without the benefit of input tax credits. Rooms priced below 1,000 will remain exempt, while luxury stays above 7,500 continue to be taxed at 18%.

For flights, economy class air tickets will now attract a GST of just 5%, compared to the earlier 12%, while business class fares will be taxed at 18% as opposed to 12%.

What this means for travellers

The changes arrive at the start of India’s most travel-intensive months , spanning the Durga Puja festivities in the east, Diwali in the west and north, and the long wedding season across the country. Domestic tourism, already on the rise post-pandemic, is set to receive a fresh boost as bite-sized leisure and short getaways become more affordable.

Hari Ganapathy, Co-founder, Pickyourtrail believes that when these savings flow through to travellers, the impact is immediate. He says, “A family may choose to stay an extra night, a business traveller might upgrade for comfort, and groups could explore new destinations without stretching budgets.”

“This reform is transformative for India’s travel and tourism sector,” says Rikant Pittie, CEO and Co-Founder of EaseMyTrip. “The simplified tax regime will make travel more affordable and boost overall demand. Reducing GST on hotel rooms will help hoteliers increase occupancy across budget and midscale segments.”

Karan Agarwal, Director at Cox & Kings, sees the move as socially significant: “Domestic travel will feel more inclusive, drawing families and younger travellers. While some premium fliers may shift to economy, this will also nudge operators to innovate new value-driven offerings.”

Enthusiasm with a note of caution

Not everyone is celebrating unconditionally. Tejas Parulekar, founder of luxury homestay chain SaffronStays, welcomes the rationalisation while pointing to areas that need further clarity:

“Tourism revenues are invisible exports, generating employment across sectors. But the absence of input credits may drive up costs for operators. Also, a clearer definition of what a ‘unit’ means—whether strictly a room—would help prevent ambiguity between hotels and homestays.”

Meanwhile, for the top-tier traveller, the change may feel like a mixed blessing. Manjari Singhal, Chief Growth and Business Officer at Cleartrip, explains: “A business class ticket that currently costs 50,000 will go up by roughly 3,000 with the new GST rate. Premium travellers tend to value experiences, so demand will hold steady, but it’s still a recalibration.”

StayVista’s Co-Founder, Amit Damani, frames the decision as “an early Diwali gift” to consumers. However, he admits some complexity remains: “It’s unclear how accounting and ITC restrictions will play out for companies.”



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Commuters will have to wait six months more to travel on new Sadhu Vaswani bridge | Pune News

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Pune: The civic body has finished around 50% of construction work on the new Sadhu Vaswani bridge in the Koregaon Park area, prolonging the wait for the project’s completion to at least another six months. At present, it is unlikely that the bridge will be ready for commuters before March 2026. Regular travellers to locations like Koregaon Park, Wadia College Chowk, Bundgarden, and around Council Hall have been facing daily hardships owing to traffic diversions introduced to assist the bridge work since 2024. Commuters said the detours increase travel time significantly, and the project should be finished at the earliest. Local commuter Ashish Gaikwad said a deadline is important to wrap up the work in progress. “People are already suffering a lot because of traffic restrictions. We want the administration to conduct repeated inspections of the work to ensure that there are no unnecessary delays,” he suggested While Pune Municipal Corporation (PMC) initiated work on the new bridge last year, a large duration of time went in demolishing the old Sadhu Vaswani bridge. Civic officials claimed that the work is progressing at the expected pace now, and the target has been set to finish it either by March 2026 or a few days before that. Once ready, the bridge will expedite commuting in the area. Its four dedicated lanes for vehicles will double the capacity of the old bridge, which had two narrow lanes. The bridge will connect Koregaon Park to the VVIP Circuit House Road. At present, commuters go via the Mangaldas Road-Wadia College-Bundgarden Road stretch between these areas. A PMC official said, “The project is delicate and challenging as the bridge is coming up above rail tracks. Works are being carried out without disturbing rail operations. We are working in coordination with the railway administration.” Demolition of the old bridge above the railway tracks had also been conducted as a joint operation between civic and railway authorities. Now, PMC has once again approached Railways, seeking a go-ahead to lay a water pipeline crossing the rail tracks from below. Officials said this water supply line was laid above the tracks along the old bridge. It will not be possible with the new infrastructure, so a plan has been formulated to align it below the tracks. Tunnel work for the pipeline has already started.





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All lines suspended as Tube strike wipes out rush hour services- latest updates – London Evening Standard

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All lines suspended as Tube strike wipes out rush hour services- latest updates  London Evening Standard



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India arranges additional flights to help stranded passengers from Kathmandu amid Gen-Z protests in Nepal

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India has arranged additional flights with Air India and IndiGo to repatriate stranded passengers from Kathmandu after Nepal reopened its airport Tuesday, following a shutdown triggered by Gen Z-led protests in the capital.

“With the opening of the airport operation in Kathmandu, @MoCA_GoI, in coordination with Air India & IndiGo, has arranged additional flights this evening & over the next few days, alongside scheduled services resuming tomorrow. Airlines have been advised to keep their fares within reasonable levels,” Civil Aviation Minister Kinjarapu Rammohan Naidu posted on X.

Hundreds of Indians had been unable to return home as Tribhuvan International Airport suspended operations when youth-led demonstrations spilled into the streets of Kathmandu, disrupting public life and raising safety concerns. The swift mobilisation of flights is aimed at clearing the backlog while keeping fares in check.

Air India mounted special services to clear the backlog. “Air India is operating special flights today and tomorrow from Delhi to Kathmandu and back to help passengers who have been stranded due to the recent developments in Nepal. Our scheduled operations will also resume from tomorrow,” the airline said, adding it was working with government agencies to facilitate travel.

Nepal has been gripped by unprecedented youth-driven demonstrations over unemployment, political corruption and disenchantment with traditional parties. The unrest has paralysed daily life in Kathmandu, forced a temporary airport shutdown and heightened concerns in the region about instability in the Himalayan nation.

The Ministry of External Affairs (MEA) issued a stark advisory asking Indians to defer travel until stability returns. “Indian citizens presently in Nepal are advised to shelter in their current places of residence, avoid going out onto the streets and exercise all due caution. They are also advised to follow local safety advisories from Nepal authorities as well as the Embassy of India in Kathmandu,” the MEA said.

IndiGo confirmed it had resumed flights. “Flight operations to and from #Kathmandu have now resumed… We sincerely appreciate your patience and understanding and remain committed to ensuring safe and smooth journeys,” the airline said.

Authorities in Delhi are also monitoring ticket prices to ensure airlines do not exploit the crisis as Nepal’s protests show no signs of abating.



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