Tourism Sector in Mysuru Hails GST Cuts as a Dasara Gift

Swift Summary

• The Union government has announced meaningful reforms in Goods and Services Tax (GST), reducing slab rates across sectors.
• GST on hotel rooms will drop from 12% to 5%, effective September 22. Hotel tariffs below ₹7,500 per night will now attract only a 5% tax.
• Previously, room rates up to ₹1,000 per night were exempt from GST, while tariffs above that attracted a flat 12% tax.
• Industry stakeholders like C. Narayanagowda of Mysuru Hotel Owners’ Association have called the revisions “clear” and “tourism-amiable.”
• Food items such as ice creams, chats, and juices previously taxed at 18% GST will now also attract only a 5% tax.
• Allied services like taxi rentals still remain under a consistent 5% GST slab rate but are being viewed positively by industry players.
• Tourism in Mysuru sustains approximately 100,000 direct jobs annually and attracts about 35 lakh tourists every year; the sector is expected to see benefits with lower costs ahead of the peak Dasara season.

indian Opinion Analysis

The union Government’s revision of GST rates appears to be strategically timed before Mysuru’s high-profile Dasara festival. With tourism being central to the local economy-generating substantial employment and drawing millions of visitors-the reform may address affordability concerns for both domestic and international travelers. Lower taxes on accommodation and food could stimulate greater consumer spending across various segments such as lodging, dining, and transportation.

Industry reactions highlight relief over rationalized taxation structures compared to past regimes under VAT or higher GST slabs. This shift might not only enhance transparency but also stabilize pricing frameworks which can foster long-term growth in tourism-driven cities like Mysuru.

While immediate gains for tourists seem evident with cheaper stays or meals-especially benefiting middle-class families-the broader implications might include improved livelihoods for those employed within hospitality-related services owing to increased visitor traffic during key seasons. However,sustained momentum beyond festive periods could depend on additional structural improvements in infrastructure or marketing efforts from both state administration and private operators.

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