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India hotels: GST 2.0, UPI and winning direct bookings

GST on hotel rooms changed on 22 September 2025. What the 5% and 18% slabs mean for your website price, and how Indian hotels win direct bookings.

India is one of the largest domestic travel markets in the world, and most bookings still pass through a few big OTAs. The hotels winning direct bookings get three things right: the price, the payment and the pace of the checkout.

GST since September 2025

From 22 September 2025, hotel rooms with a tariff up to ₹7,500 per night attract 5% GST without input tax credit, and rooms above ₹7,500 attract 18% with full input tax credit. Spa and wellness services moved to 5% without input tax credit, while restaurants and banqueting stay at 18%.

For many hotels, this cut the price guests pay. Make sure your website shows it — and if your rooms sit on both sides of ₹7,500, check that the right slab applies to each booking, including when a promotion moves a room below the threshold.

Payments guests expect

UPI, cards and wallets online, and pay at the hotel for many domestic guests. goDirects offers Razorpay for online payments and pay at property for the rest.

Beat the OTA price

Guests check MakeMyTrip, Goibibo and Agoda before they book. Price Match keeps your direct rate lower, within limits you set.

Weddings and festivals

The October–February festive and wedding season fills hotels with room blocks and banquets. Let planners request a quote through group booking, and sell events through events and MICE.

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