Planning your next escape to the hills, forests, or a dreamy glamping tent just got a whole lot easier on your wallet! With the new GST changes rolled out in September 2025, staying at boutique hotels, eco-resorts, and unique accommodations like camping sites, glamping pods, and nature retreats has become more affordable.
These reforms are designed not only to give travelers big savings but also to empower small hoteliers, homestays, and eco-friendly accommodation providers. Here’s everything you need to know about what’s changed—and why it’s great news for your next trip.
The GST 2.0: What Changed for Stays
Earlier, if your room or stay cost up to ₹7,500 per night, it attracted 12% GST (with ITC). Now, under GST 2.0, the government has slashed that rate to just 5% (without ITC).
Meanwhile:
- Rooms priced upto 7500/night will be taxed at 5% GST (without ITC)
- Rooms above ₹7,500/night continue to attract 18% GST (with ITC)
In simple words: Most boutique hotels, eco-lodges, camps, and glamping spots now fall in the 5% slab, making them cheaper for travelers and more attractive for hosts looking to increase bookings.
Why This is Great for Travelers
- More affordable stays: For a ₹6,000/night room, GST is now just ₹300 (instead of ₹720 earlier). That’s savings of ₹420 per night—money you can put towards experiences, meals, or an extra day out in nature.
- Wider choices: Many hotels, campsites, boutique eco-resorts, and glamping operators that struggled with higher tax brackets now become more competitive. Expect new options and deals in the nature travel space.
- Budget planning: Transparent, simplified GST means fewer hidden surprises on your bill—helping you plan your travel budget more confidently.
Why This is Great for Hoteliers, Camps & Glamping Hosts
- Boost in demand: Lower GST encourages more domestic travelers to book eco-friendly and offbeat stays. Occupancy rates are expected to rise, especially in the budget and mid-range segments.
- Simplified pricing: By reducing slabs, GST 2.0 makes it easier for hosts to price rooms clearly and attractively, without confusing customers.
- Stronger market for boutique properties: Camps, glamps, and nature resorts often price under ₹7,500/night, putting them right in the sweet spot of the new 5% slab. This helps them stand out against luxury hotels while attracting value-seeking guests.
- Encourages local tourism: Small and mid-sized hosts in rural, hill, and nature-rich areas gain a bigger slice of the travel pie, helping spread tourism benefits more evenly.
GST 2.0 Example: What You Save Now
- A couple booking a 3-night glamping stay at ₹6,000/night now saves over ₹1,200 in taxes compared to earlier.
- A group staying at a boutique eco-hotel charging ₹7,200/night would now pay only 5% GST instead of 12%—bringing real, noticeable savings.
The Ripple Effect on Travel
- Nature travel boom – Lower costs mean more Indians are likely to try camping, glamping, and boutique eco-stays for their next weekend getaway.
- Offbeat locations shine – From Himalayan homestays to forest camps, properties in lesser-known areas become more attractive with competitive pricing.
- Sustainable stays thrive – Eco-friendly accommodations, which often rely on modest tariffs, will benefit most from the 5% slab, encouraging greener travel choices
What Travelers Should Do
- Check GST on invoices: When booking stays, look for the new 5% rate if upto ₹7,500/night.
- Take advantage of mid-range deals: Properties under ₹7,500/night offer the best savings now.
- Explore more nights or experiences: Your savings on tax can fund an extra activity like trekking, kayaking, or a special dinner under the stars.
The latest GST reforms are a win-win for both travelers and nature-based hosts. With lower tax rates, stays become more affordable, helping travelers explore more destinations and hosts attract more guests. Whether you’re planning to book a glamping dome in the hills, a lakeside campsite, or a cozy eco-resort in the forest, now is the perfect time to lock in your next adventure.
Travelers save money. Hosts get more bookings. Nature tourism grows.
It’s the best kind of change—one that makes sustainable and memorable travel experiences accessible to more people. 🌿
