GST on Tour and Travel 2025

Introduction: When Taxes Meet Wanderlust

The issue with traveling in India is that it could be thrilling, interesting, and, yes, a tad costly at times. But as of September 22, 2025, the government reformed the GST on tour and travel so that travel became less expensive to some extent.

No matter if you are planning a wellness retreat in Kerala, reserving a boutique hotel room in Jaipur, or reserving an economy flight to Goa, being aware of travel and tour taxes can make you save substantial amounts of money. This is where Travel Junky comes in handy. Think of it as a travel-wise buddy who knows the optimal routes and well-considered packages that maximize every penny spent on experiences and not hidden costs. A second serving of Goan prawn stew or a serene Alleppey houseboat excursion will cost additional money.

Once the GST puzzle is understood, from flights to wellness retreats to heritage tours, small savings can turn into big experiences. Travel Junky helps navigate all of this so the trip is about memories, not receipts.

This guide will break down flights, hotels, dining, tours, and wellness packages, providing you with practical tips and real-life examples to stretch every rupee further.

Air Travel: Up, Up, and Smarter

Economy Flights: Small Tax, Big Savings

Flights can be the most expensive part of a trip, but here’s the silver lining: domestic economy tickets now come with just 5% GST, down from 12%. That might not sound like a lot, but it adds up.

A Mumbai-Goa ticket at ₹5,000? Tax drops from ₹600 to ₹250. For a family of four, that’s ₹1,400 extra—enough for a private Mandovi River cruise or a couple of fancy coffee stops while exploring Panaji.

If you’re someone who always books at the last minute, then try planning earlier. Snag those seats in advance, pair it with the reduced GST on air tickets in India, and suddenly the trip feels more like an adventure and less like a balancing act with the credit card.

Premium Flights: A Slightly Fancier Bill

The GST for flight tickets, in case of business or first-class tickets, has increased to 18%. Yes, it’s higher, but you’re paying for luxury: spacious seats, gourmet meals, and a little extra legroom for stretching those tired travel legs.

Mini tip: If your flight is long-haul, consider flying economy and using the saved GST for experiences at your destination. Sometimes the joy is in exploring a local market or taking a cooking class rather than a luxurious flight.

Case Study: Anita from Delhi wanted to fly to Kochi. She compared two options: premium business class with 18% GST or economy with a boutique Kerala homestay experience funded by the savings. She chose the economy, upgraded her stay, and still had money left for a houseboat trip. Moral of the story: check both options before splurging.

Hotels: Sleep Smarter, Not Costlier

Budget & Mid-Range Hotels: Sweet Deals

Rooms under ₹7,500/night now have 5% GST. That’s nearly half the old 12% for rooms priced around ₹6,000. Suddenly, a weekend in Udaipur at a boutique stay costs far less, leaving room in your budget for city tours, sunset boat rides, or the inevitable souvenir shopping spree.

Hidden gems? Think Coorg homestays, quirky Goa beach cottages, or Rajasthan havelis. With the reduced GST, you can even afford a second night to explore nearby attractions.

Luxury Hotels: Still the Same Rate

Luxury rooms over ₹7,500/night stay at 18% GST. Yes, splurging still costs more, but now you can plan wisely: perhaps two nights in a luxury suite plus two nights in a mid-range boutique property. You get variety and savings—who says you can’t mix luxury with budget-friendly options?

Fun Tip: Check if luxury hotels offer inclusive packages (meals + activities). Even with 18% GST, bundled deals can be cheaper than paying à la carte.

Dining: Eat Well, Pay Less

Non-AC restaurants: 5% GST
AC restaurants: 18% GST

Imagine this: you’re strolling through Jaipur’s colorful bazaars, craving a plate of dal baati churma. Thanks to the lower GST, that plate costs less, leaving you cash for a sweet treat afterward.

Mix it up: street food + one fancy dinner per trip. That’s balance, budget, and taste all in one.

Tour Packages: Pack More Fun

GST on tour packages is now taxed at 5% GST without ITC.

Example: A ₹50,000 Rajasthan heritage tour previously had ₹6,000 in tax. Now it’s only ₹2,500. That extra ₹3,500? Elephant rides, camel safaris, or souvenirs.
Domestic packages benefit the most: Western Ghats, Kerala backwaters, and desert safaris are now more wallet-friendly.

Wellness Tourism: Recharge Without Guilt

Wellness retreats now enjoy 5% GST, down from 18%.

Yoga retreats in Rishikesh
Ayurvedic treatments in Kerala
Herbal wellness centers in Sikkim

Mini case study: Rajesh planned a 3-day Ayurveda detox in Kerala. With the lower GST, he saved ₹2,000—enough to fund an extra ayurvedic massage session.

Pro Tip: Traveling off-season can maximize savings. Plus, smaller retreats may offer personalized experiences that luxury resorts can’t match.

Destinations: Make the Most of Your Budget

Goa: Budget hotels and tour packages leave more money for parasailing, dolphin-watching, and street food.
Jaipur: Heritage stays under ₹7,500 bring royal experiences without overspending.
Kerala: Houseboats, wellness retreats, and local tours are cheaper—relaxation made accessible.
Rishikesh: Yoga and adventure tours attract lower taxes, giving space for multiple experiences.

Off-peak travel? Even better. Less crowded spots and lower costs make the experience more enjoyable.

Quick Tips to Maximize Savings

Book early—especially flights and hotels.
Bundle tours with meals or activities for better value.
Eat locally—standalone restaurants are authentic and cheaper.
Include wellness activities—yoga and spa sessions now cost less.
Travel off-peak—fewer crowds and lower costs improve the experience.

Travel Better with Travel Junky

The updated GST on travel and tourism makes journeys around India affordable. Travel Junky's handpicked family packages, wildlife packages, adventure packages, beach packages, and many more ensure money is being spent on experiences and not taxes. Smarter planning lets travelers relish destinations, indulge in local flavors, and experience memories that last, all while being transparent and affordable in costs. Travel smart, travel happy, and let the experience itself be the prize.

Quick GST Snapshot

Economy Flights: 12% → 5%
Premium Flights: 12% → 18%
Budget Hotels (<₹7,500): 12% → 5%
Luxury Hotels (>₹7,500): 18% → 18%
Non-AC Restaurants: 12% → 5%
AC Restaurants: 18% → 18%
Tour Packages: 12% → 5% (without ITC)
Wellness Packages: 18% → 5

Pro Tips to Maximize Your Travel Budget

Book Early: Flights and budget hotels—scoop up those 5% savings.
Bundle Wisely: Tours with meals and activities often beat paying à la carte.
Eat Local: Non-AC restaurants = authentic + affordable.
Travel Off-Peak: Lower GST + off-season deals = double win.
Compare Flights: Economy + upgrades at destination can be cheaper than paying 18% GST on premium tickets.

Knowledge is Power

With GST reform 2025, your travel dollar goes farther, whether you're booking a quick weekend escape, a high-end getaway, or a health retreat. Education is power because if you know which services are less taxed, you can plan more wisely, save more, and enjoy your journey without secret financial worries.

GST on Tour and Travel 2025: Tips to Save on Flights, Hotels, and Experiences