Demand expands beyond traditional locations
Hospitality providers indicate that destination weddings are no longer confined to a select few luxury cities but are now exploring experiential and regional destinations as well.
Krinal Thaker, AGM – Marketing & Experiences at Evoke Experiences, a leading Indian hospitality brand, mentioned that demand is expanding across various types of properties.
“The increasing popularity of destination weddings has led to a surge in interest not only in traditional luxurious venues but also in new experiential destinations,” Thaker noted.
He highlighted that venues like Evoke Dholavira and the Statue of Unity Tent City-1 are attracting more mid-range weddings that focus on multi-day experiences.
Thaker pointed out that services are often packaged together.
“Clients prefer large inventory blocks and event spaces, as well as well-curated multi-day experiences instead of one-time events,” he stated, adding that accommodation, food, décor, and logistics are frequently bundled into a single offering.
Sumit Mitruka, Founder & CEO of Summit Hotels & Resorts, a hospitality chain specializing in Himalayan cultural luxury, shared that weddings have become a reliable business segment for hotels.
“Destination weddings have transitioned from being seasonal to a steady driver of demand,” Mitruka remarked, noting that interest is growing in locations such as Rishikesh, Siliguri, and Sikkim, where more intimate and picturesque weddings are favored.
How GST applies to destination weddings
According to GST regulations, while the wedding itself is not taxed, the individual services utilized are subject to taxation, whether taken separately or as bundled services.
Dinkar Sharma, Company Secretary and Partner at Jotwani Associates, a multi-disciplinary law firm, explained that a destination wedding is categorized as a collection of various taxable services.
“Though it may appear as a singular event, under GST it encompasses multiple services like venue, catering, décor, and event management,” Sharma elaborated.
He clarified that taxation hinges on how these services are classified. If recognized as a composite supply, tax is levied on the primary service. Conversely, if treated as a mixed supply, each component is subject to individual taxes.
Location matters for taxation
GST is based on the location where the service is rendered, rather than where the service provider is based.
Sharma explained that in the case of destination weddings, the tax is applicable at the event’s location. This means vendors from various states might need to adhere to different compliance obligations based on the wedding’s venue.
Input tax credit rules
Although GST generally permits tax credit claims, destination weddings often do not fully benefit from these credits.
Catering services typically incur lower tax rates but do not allow for input tax credit claims. Additionally, expenses related to weddings are categorized as personal consumption, which restricts credit availability under GST guidelines.
Insurance becomes part of planning
In tandem with taxation, insurance is now viewed as a standard component of event planning within the tourism and wedding sector.
Rohit Kohli – Joint Managing Director, Creative Travel family of brands, a Destination Management Company (DMC), remarked that insurance has evolved into a crucial aspect of how events are designed.
“Liability insurance has transformed from merely a precaution to a foundational element of trust,” Kohli stated.
He added that coverage is becoming more detailed, catering to various travel and event formats, particularly in weddings.
Tax structure changes and cost impact
CA Kunal Pasari, Assistant Professor, School of Commerce, NMIMS Chandigarh Campus, noted that recent changes in GST have altered cost structures across key wedding services.
He revealed that both venue and catering services are now subject to an 18% GST rate, lower than previous rates, reducing costs in this area.
Beauty and wellness services are taxed at 5%, while premium fashion and high-end accessories incur a 40% tax rate, excluding items priced below ₹2,500, which are taxed at a lower rate.
Pasari indicated that reduced taxes on essential services have enhanced the competitiveness of domestic destinations for weddings, highlighting that India’s beaches, heritage sites, and scenic spots continue to be sought-after alongside international venues.
He also pointed out that GST rates are consistent across states, meaning that taxation remains unchanged regardless of whether services are procured within the same state or across different states.
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