India has announced major GST cuts on hotels and airfares, effective September 22, 2025, to make travel more affordable and boost tourism. Hotel stays under ₹7,500 will now be taxed at 5% instead of 12%, while economy flights drop to 5% GST from 12%. The move is expected to benefit mid-range hotels, economy travel, and festive-season trips, positioning India as a more competitive destination for domestic and international tourists.