India, Sept. 6 -- Folks, holidaying this festive season just got easier on the wallet. In its 56th meeting chaired by Finance Minister Nirmala Sitharaman, the Goods and Services Tax (GST) Council has slashed rates on hotels and airline tickets, changes that take effect from September 22, 2025. For hotels, the rationalisation is significant: rooms priced at or below Rs.7,500 per night will now attract only 5% GST, down from the earlier 12%. Rooms under Rs.1,000 remain exempt, while luxury stays above Rs.7,500 continue at 18%. Air travel also gets a reprieve. Economy class tickets will be taxed at 5% instead of 12%, while business class fares moved up from 12% to 18%. The reforms arrive as India enters its most travel-intensive months - Durga Puja in the east, Diwali in the west and north, and the long wedding season nationwide. With domestic tourism surging post-pandemic, the government is betting on affordability to fuel demand. "This reform is transformative for India's travel and tourism sector," says Rikant Pittie, CEO and Co-founder of EaseMyTrip, adding, "Reducing GST on hotel rooms will help hoteliers increase occupancy across budget and midscale segments." Karan Agarwal, director at Cox & Kings, calls the move 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 value-driven offerings." The cheer comes with caveats. Tejas Parulekar, founder of luxury homestay chain SaffronStays, points out: "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." Premium travellers too may feel a pinch. "A business class ticket that currently costs Rs.50,000 will go up by roughly Rs.3,000 with the new GST rate," explains Manjari Singhal, chief growth and business officer at Cleartrip, adding, "Premium travellers value experiences, so demand will hold steady, but it's still a recalibration." For most consumers, however, the reform feels like an "early Diwali gift", as StayVista's co-founder Amit Damani puts it....