From Shacks to Startups: GST 2.0 Powers Goa’s Economic Revival

The economy of Goa is majorly dependent on tourism, local industries, and agriculture. The new GST rate cuts are reducing costs, making goods and services cheaper, and helping to make the business market more competitive. The Press Information Bureau (PIB) Delhi has recently issued a press release dated October 12, 2025, explaining how GST reforms 2.0 are helping Goa’s economy across different sectors, from tourism and transport to agriculture, fisheries and pharmaceuticals. Here’s a comprehensive understanding:

1. Tourism and Hospitality:

Hotels, beach shacks, and resorts in North and South Goa (like Calangute, Baga, Colva, and Palolem) will see input items like toiletries and breakfast supplies become cheaper because GST has been reduced from 18% to 5%. This means prices may fall by about 11%. Also, pre-packaged tender coconut water and similar items moving from 12% to 5% may become cheaper by about 6.25%, helping around 2.5 lakh workers and making tourism more affordable.

2. Restaurants and Beach Shacks:

Restaurants and beverage kiosks in Goa, including beach shacks, cafes, and juice stalls, are likely to benefit from the GST reduction from 12% to 5% on fruit juices. This makes drinks cheaper by around 6.25%, resulting in accessibility to consumers at affordable rates. This helps about 8,000 small vendors earn better.

3. Transport (Taxi, Auto and Bike Rentals):

The auto, taxi, and bike-rental ecosystem in Goa is likely to benefit from GST reforms 2.0. As the government has reduced GST rates on small cars and bikes from 28% to 18%, resulting in an ultimate reduction in price of about 7.8%. Approximately 40,000 taxi and bike operators are anticipated to benefit, making rentals cheaper for tourists and locals.

4. Pharmaceuticals and Diagnostics:

Goa’s pharmaceutical formulations and diagnostics sector employs skilled chemists, lab technicians, shop-floor workers, and QC staff, with both migrant and local workforces depending on steady jobs in formulation and IVD units. Approximately 75,000 individuals (representing 22.5% of the state’s total factory workforce) in Goa are dependent on this sector for their livelihood. This GST reduction on many inputs and services from 18% to 5% will benefit Goa’s pharma industry a lot. Prices of goods and services in this sector are likely to reduce by approximately 11%, while nil-rated items such as books and stationery used by laboratories are expected to become cheaper by approximately 4.8%.

5. Construction and Real Estate:

The GST rate on goods and services of Goa’s construction and real estate sector has been reduced from 28% to 18%, which is likely to benefit this sector a lot. This sector in Goa employs about 35,000 individuals, including daily-wage masons, plumbers, electricians, and carpenters. Cement’s GST cut alone, from 28% to 18%, will make housing and hotel projects cheaper by about Rs. 25-30 per bag of cement. This GST reduction supports about 35,000 construction workers.

6. Fisheries and Seafood:

The GST rate on the fisheries and seafood value chain in Goa has been reduced to 5%, contributing approximately 2.5% to Goa’s GSDP. The industry sustains boat crews, small-scale fishers, migrant deckhands, auctioneers, and women vendors, with many coastal families relying on seasonal fishing for income. This may reduce production and consumer prices by 6-11%, helping around 15,000 people in the fishing sector and improving export competitiveness.

Overall, Goa’s economy is expected to grow faster and become stronger because of these GST 2.0 changes.

Refer to the official press release for complete information.