Demand expands beyond traditional locations
Hospitality providers indicate that destination weddings are no longer confined to a select few luxury cities but are now encompassing experiential and regional destinations as well.
Krinal Thaker, AGM – Marketing & Experiences at Evoke Experiences, a leading Indian hospitality brand, mentioned that demand is growing across various property types.
“The rise in popularity of destination weddings has led to increased demand not only from traditional luxurious locales but also from newer experiential destinations,” Thaker stated.
He pointed out that venues like Evoke Dholavira and Statue of Unity Tent City-1 are attracting more interest for mid-range weddings prioritizing multi-day experiences.
He noted that services are commonly packaged together.
“People are leaning towards large inventory blocks and event spaces, along with curated multi-day experiences rather than just one-off events,” he remarked, adding that accommodations, catering, décor, and logistics are frequently bundled into a single offering.
Sumit Mitruka, Founder & CEO of Summit Hotels & Resorts, a hotel chain specializing in Himalayan cultural luxury, stated that weddings have emerged as a stable business segment for hotels.
“Destination weddings have transitioned from seasonal events to a consistent source of demand,” Mitruka observed, noting a growing interest in places like Rishikesh, Siliguri, and Sikkim, where smaller, more scenic weddings are favored.
How GST applies to destination weddings
According to GST regulations, while the wedding itself is not taxed, the services involved are taxed either individually or as a collective.
Dinkar Sharma, Company Secretary and Partner at Jotwani Associates, a multi-disciplinary law firm, explained that a destination wedding is considered a combination of distinct taxable services.
“Though a destination wedding may seem like a single event, under GST, it comprises various services such as venue, catering, décor, and event management,” Sharma elaborated.
He clarified that the taxation depends on the classification of services. If treated as a composite supply, the tax is levied on the main service. If treated as a mixed supply, each component incurs separate taxation.
Location matters for taxation
GST applies based on where the service is rendered, rather than where the supplying company is based.
Sharma mentioned that in the context of destination weddings, the tax is applicable where the event occurs. This indicates that vendors from various states may have to adhere to different compliance requirements based on the wedding’s location.
Input tax credit rules
Although GST provides for tax credit generally, destination weddings frequently do not fully benefit from this provision.
Catering services are typically taxed at lower rates but do not qualify for input tax credit. Additionally, expenses related to weddings are categorized as personal consumption, thereby limiting credit availability under GST regulations.
Insurance becomes part of planning
Alongside taxation, insurance is increasingly becoming a standard aspect of event planning within the tourism and wedding sectors.
Rohit Kohli – Joint Managing Director, Creative Travel family of brands, a Destination Management Company (DMC), remarked that insurance has now become integral to event structuring.
“Liability insurance is no longer just a protective measure; it has become a foundation of trust,” Kohli stated.
He added that coverage is becoming more specialized, catering to different travel types and event formats, including 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 transformed cost structures in key wedding services.
He observed that venue and catering services now levy 18% GST, compared to previously higher rates, resulting in reduced costs in this area.
Beauty and wellness services attract 5% GST, while luxury fashion and high-end accessories are taxed at 40%, except for items priced below ₹2,500, which fall under a lower bracket.
Pasari indicated that lower taxes on primary services have enhanced the competitiveness of domestic destinations for weddings. He remarked that India’s beaches, heritage sites, and picturesque locations remain popular options alongside international destinations.
He also noted that GST rates are consistent across states, meaning taxation does not vary based on whether services are sourced within the same state or from different states.
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