Category Archives: MOT

Commenting on the revised GST regime, Harmandeep Singh Anand, Managing Director, Jagsons Travels, said, “Premium travel by air will get more expensive by 6% now as the same has been raised from 12 to 18%. Vehicles above 1200cc will be more expensive, as the GST has been raised from 28 to 40%, so rental taxi services not availing input credit will end up increasing the rental cost for such vehicles. Totals to the lower category has been reduced from 12 – 5%. But input tax credit has been disallowed to them. They’ll be availing a lot of input services So, depending on the size and the type of hotel, the implication will be there, and base price will increase for the consumer. The GST input credit will be disallowed for smaller hotels, particularly, which are offering it at 7500 or lower. on the higher side, it remains 18%, so there would be no change on that front. Overall. If you look at the masses, a lot of services have been reduced or made nil tax particularly for health and life insurance, GST has been reduced from 18 to nil. So that gives a lot of relief.”  

Sharing his perspective on the impact on revised GST, Santosh Sharma, Founder & CEO, BookMyJet, says, “As far as private charters are concerned, GST on buying a private jet under private category has gone up from 28% to 40%. This would definitely discourage the individual & corporate houses who are deliberating to buy their private jet under private category. Thankfully, there’s no GST implication on people who are willing to buy aircraft under NSOP category where the tax is about 5%. However, flying has increased tremendously since covid. The increase in tax, which is from 12 to 18% on business travel, will definitely discourage people from flying but people in this category wouldn’t reduce their flying cos of this. Also, the way our economy is growing and the way HNIs and corporate honchos are flying, I don’t think this additional 6% tax will hit them, because they have no choice but to pay this. As far as, premium flying is concerned, these people were already paying taxes. And in most of the airports the charges have gone up drastically. And still people are flying. So, it is natural that travellers will feel disappointed that taxes have gone higher for the luxury segments, but they have no choice but to pay the extra amount and continue to fly. I don’t think this will impact anybody except people who wanted to buy a private jet in the private category who might now think of getting their aircraft under NSOP category.”  

VFS Global has signed a co-branding agreement with the Ministry of Tourism, Republic of Indonesia to strengthen and expand brand awareness of Indonesian tourism under the Wonderful Indonesia campaign for increasing international arrivals and encouraging investments into the country. As part of the agreement, VFS Global will help in increasing the brand awareness of the Wonderful Indonesia campaign and improving the quality and quantity of tourism marketing through brand partnerships. The agreement was signed between Ni Made Ayu Marthini, Deputy Minister for Marketing, Ministry of Tourism of the Republic of Indonesia, and Mr. Kaushik Ghosh, Head – Australasia, VFS Global, on 13 August 2025 in Jakarta. Ni Made Ayu Marthini, Deputy Minister for Marketing, Ministry of Tourism, Republic of Indonesia, said, “We are excited to join forces with VFS Global in strengthening the Wonderful Indonesia campaign on the global stage. Through this co-branding agreement, we will amplify our tourism message and leverage VFS Global’s extensive presence in over 160 countries, combined with innovative outreach, to inspire more travellers to experience the beauty and diversity of Indonesia.” Since 2024, VFS Global is also an official partner of the Indonesian Directorate General of Immigration. As part of the partnership, VFS Global has launched a new e-VoA platform for nationals of all the 97 countries eligible for e-VoA, to provide them a quicker and smoother visa application journey online. Kaushik Ghosh, Head – Australasia, VFS Global, said, “We are honoured to collaborate with the Ministry of Tourism to strengthen global awareness of the country’s vibrant tourism offerings. With over 16 years of experience in tourism-related services, VFS Global brings proven expertise in promoting destinations to a global audience. Through the promotion of the e-Visa …

Speaking at the 40th IATO Convention in Odisha’s Puri, Suman Billa, Additional Secretary and Director General Tourism, Ministry of Tourism, Government of India, said, “India needs three times the current number of hotel rooms to meet future demand. Unless we are able to unlock that and push the needle, it is going to be a challenge.”

The Federation of Hotel & Restaurant Associations of India (FHRAI), representing the hospitality industry across the country, has requested Smt. Nirmala Sitharaman, Hon’ble Union Finance Minister and Chairperson of the GST Council, for the rationalisation of GST in the tourism and hospitality sector. The appeal seeks to position Indian tourism as a driver of economic growth while enhancing its global competitiveness in alignment with India’s Vision 2047. FHRAI welcomed the landmark GST reforms announced by the Hon’ble Prime Minister on August 15, 2025, describing them as a reflection of the Government’s commitment to strengthening India’s tax regime, simplifying compliance, and paving the way for sustained growth. Tourism has long been one of India’s most strategic growth pillars, contributing nearly five per cent to the nation’s GDP, with the potential to double this contribution if supported by conducive policy measures. It remains one of the largest employment generators, offering extensive opportunities for youth and women, and is recognised for its high multiplier effect, where every rupee invested in hospitality generates a return of 3.5 rupees in output, while one direct job in the sector creates an additional 3.2 indirect jobs. Despite this strong potential, India’s current GST structure makes the tourism sector less competitive compared to its Asian peers. Countries such as Thailand, Indonesia, Vietnam, Sri Lanka, Singapore, and Malaysia operate under lower tax regimes, ranging between 6 and 10 per cent, which helps them attract significantly larger tourist inflows. In contrast, India’s higher GST structure reduces affordability and weakens its appeal for international travellers. FHRAI has therefore emphasised the need for uniformity and simplicity in GST to make tourism services more accessible and globally competitive. It has recommended the introduction …

Speaking about India’s progress in terms of offering sustainable travel, Amitabh Kant, India’s G20 Sherpa, Former CEO of NITI Aayog, says, “In the last 15 years, railway electrification in India has jumped from 30% to a remarkable 99%. Now India stands second in the world, ahead of Japan, US, and Germany.”

The Department of Tourism has launched its Homestay and Bed & Breakfast Scheme at the hands of Hon’ble Chief Minister, Dr. Pramod Sawant, in the presence of Hon’ble Minister for Tourism, Rohan A Khaunte; Hon’ble MLA Bicholim and Chairman of Infotech Corporation of Goa Ltd., Shri Chandrakant Shetye; Hon’ble MLA Mayem, Shri Premendra Shet; Secretary Tourism, Shri Sanjeev Ahuja, IAS; Director Tourism, Shri Kedar Naik; and Managing Director, Shri Kuldeep Arolkar at the PAC Hall, Secretariat, Porvorim. The launch aimed at promoting community-driven tourism, rural livelihoods, and experiential travel in Goa. The initiative is part of the state’s larger vision to diversify its tourism offerings beyond beaches and strengthen Goa’s positioning as a model for Regenerative Tourism in India. What was earlier conceptualized as a policy has now been reframed and strengthened as a scheme. The revised scheme offers a combination of fiscal and non-fiscal incentives, simplified registration processes, and quality classifications, making it easier and more rewarding for local residents to operate homestays in rural areas of the state, paving the way for boosting Rural and Hinterland Tourism in Goa. This scheme also holds the power to foster women and youth entrepreneurship, encouraging self-reliance while preserving our unique Goan heritage. Under the scheme, eligible establishments located in the talukas of Sattari, Sanguem, Dharbandora, Bicholim, Canacona, Ponda, and Quepem will receive a one-time grant of ₹2,00,000, along with access to marketing support, training, listing on Goa Tourism platforms, and subsidized participation in domestic trade fairs. The scheme will remain valid for five years and may be extended further by the Department. Chief Minister Dr. Pramod Sawant stated “The Homestay Scheme has been launched with a renewed focus on promoting the …

Tourism Minister Gajendra Singh Shekhawat revealed steps to connect government tourism institutes with hotel chains for mentorship, curriculum redesign and personal guidance. “We’ve signed MOUs with hotel chains. The mentor-mentee program will drive career growth and institutional strengthening,” he said, urging industry leaders to institutionalise the model for sustained youth engagement in tourism.

Suman Billa, Additional Secretary & DG, Tourism, said, “The Marketing Development Assistance (MDA) scheme is going to come back. It is part of the plan for the next cycle. We want to make it purposeful, so that it can make some impact.  It will come with some changes.”  

Gajendra Singh Shekhawat, Tourism Minister, GoI, informed Rajya Sabha that the MOT extends financial assistance to approved tourism service providers (TSPs) under the MDA Scheme for overseas tourism promotion. However, no aid was granted to the states or UTs in the past three years. The scheme is currently under review to align with the industry’s evolving needs.