In a bid to boost the tourism industry and generate more jobs, the GST Council has approved a reduction in tax rates of hotel rooms costing above ₹7,500. The council has decided to reduce the GST rate to 18%, down from 28%. The GST Council has also approved a zero GST rate on hotel tariffs that are up to ₹1,000. It was earlier reported that all the state finance ministers are in-line with the GST rate cut on hotel rooms as the decision is unlikely to affect any overall GST receipts.