Home WeddingDestination weddings in India: How taxation, bundled services and insurance shape the industry

Destination weddings in India: How taxation, bundled services and insurance shape the industry

by R.Donald


Destination weddings in India are structured around multiple services including venues, catering, décor, accommodation and logistics. While the wedding ceremony itself is not taxed, the services around it fall under the GST framework, making taxation, contracts and service bundling an important part of how the segment operates.

Demand expands beyond traditional locations

Hospitality providers say destination weddings are no longer limited to a few luxury cities and are now spread across experiential and regional destinations as well.
Krinal Thaker, AGM – Marketing & Experiences at Evoke Experiences, a premier Indian hospitality brand, said demand is widening across different types of properties.

“The popularity of destination weddings has contributed to increasing demand from not only traditional luxurious places but also experiential new destinations,” Thaker said.

He added that properties like Evoke Dholavira and Statue of Unity Tent City-1 are seeing more interest from mid-range weddings focused on multi-day experiences.

He noted that services are offered as packages.

“People prefer large inventory blocks and event spaces, along with curated multi-day experiences rather than one-time events,” he said, adding that accommodation, food, décor and logistics are often bundled into a single offering.

Sumit Mitruka, Founder & CEO of Summit Hotels & Resorts, a hospitality chain specialising in Himalayan cultural luxury, said weddings have become a steady business segment for hotels.

“Destination weddings have moved from being seasonal to a consistent driver of demand,” Mitruka said, adding that interest is rising in destinations such as Rishikesh, Siliguri and Sikkim, where smaller and more scenic weddings are preferred.

How GST applies to destination weddings

Under GST rules, the wedding itself is not taxed, but the services used in it are taxed individually or as bundled services.

Dinkar Sharma, Company Secretary and Partner at Jotwani Associates, a multi-disciplinary law firm, said a destination wedding is treated as a collection of different taxable services.

“A destination wedding may look like one event, but under GST it includes multiple services such as venue, catering, décor and event management,” Sharma said.

He explained that taxation depends on how services are classified. If treated as a composite supply, tax is applied on the main service. If treated as a mixed supply, each part is taxed separately.

Location matters for taxation

GST is based on where the service is provided, not where the company is located.

Sharma said that in destination weddings, the tax applies where the event takes place. This means vendors from different states may need to follow multiple compliance requirements depending on the location of the wedding.
Input tax credit rules

Even though GST allows tax credit in general, destination weddings often do not benefit fully from it.

Catering services are usually taxed at lower rates but do not allow input tax credit. Wedding-related expenses are also treated as personal consumption, which limits credit availability under GST rules.

Insurance becomes part of planning

Along with taxation, insurance is becoming a standard part of event planning in the tourism and wedding industry.

Rohit Kohli – Joint Managing Director Creative Travel family of brands, a Destination Management Company (DMC), said insurance is now part of how events are structured.

“Liability insurance has become more than a safeguard; it is now a cornerstone of trust,” Kohli said.

He added that coverage is becoming more specific, covering different types of travel and event formats, including weddings.

Tax structure changes and cost impact

CA Kunal Pasari, Assistant Professor, School of Commerce, NMIMS Chandigarh Campus, said recent GST changes have reshaped cost structures across key wedding services.

He noted that venue and catering services now attract 18% GST, compared to earlier higher rates, which has reduced costs in this category.

Beauty and wellness services attract 5% GST, while premium fashion and high-end accessories are taxed at 40%, except for items below ₹2,500, which fall under a lower slab.

Pasari said lower taxes on core services have made domestic destinations more competitive for weddings. He added that India’s beaches, heritage sites and scenic locations continue to remain relevant choices alongside international destinations.

He also noted that GST rates remain uniform across states, meaning taxation does not change based on whether services are sourced within the same state or across different states.

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