Considering Lakshadweep for Your Vacation? Calculate Your Vacation Budget and GST Over Maldives

Lakshadweep is an exquisite destination that won't burden your budget, allowing you to explore the place for just Rs. 42,000 per person.
lakshadeep travel budget - budget trip to lakshadeep - Maldives vs. Lakshadweep travel cost - GST comparison for Maldives and Lakshadweep trips - Taxscan

The deteriorating relationship between India and Maldives is becoming increasingly evident. The #BoycottMaldives campaign is adding significance for Indians who invest substantial amounts for their vacations in the country. This movement is prompting citizens to reconsider and explore the beauty of their own nation.

Explore Lakshadweep as an alternative to the Maldives. Consisting of 36 coral islands in the Arabian Sea, off the southwestern coast of India, with Kavaratti as its capital, Lakshadweep is recognized for its fishing and coconut cultivation. It’s important to note that a permit from Lakshadweep authorities is required for entry, even for Indian nationals. Typically, travel agencies handle this process on your behalf.

And what about the Minimum budget and the taxes? Do you think it’s more expensive than Maldives? Definitely ‘NO’. According to the packages provided by the companies like Makemytrip, the package starts from Rs. 23,049 (very speculative on demand time) per person excluding flight tickets and transfer. The package includes accommodation for 3 nights stay, 9+ activities and also meals.

What about the GST? They charge a 5% GST on the total amount of Rs. 23,049. You have to pay GST of Rs. 1152.45.

As mentioned earlier, the package excludes Flight tickets. For a Lakshadweep trip, it is hard to get a direct flight now from Mumbai, Delhi or Bangalore. However, it is expected that the government will take necessary steps for that. Currently, you have to take a flight from Cochin to Agatti Islands (airport in Lakshadweep).

When you visit the easemytrip website to book a flight from Cochin to Agatti Islands on January 21, 2024, the ticket price is Rs. 10,588, inclusive of fees and surcharges for Economy class. This applies to one-way regular flights operated by Alliance Air, with a duration of 1 hour and 25 minutes. The ticket price may change when you opt for other plans like value and flexi.

Regarding GST, the IGST rates for air transport were disclosed post the GST council meeting on May 18-19, 2017, constituting 5% for Economy Class travel and 12% for Premium Economy, Business, or First Class travel, applicable to both domestic and international flights. Examining the bill details on easemytrip, the base ticket fare is Rs. 9500. A 5% GST is applicable, amounting to Rs. 475, considering it is an economy class ticket, with the remaining balance covering surcharges and a total of Rs. 1088.

Coming to the people who are outside Kerala, like from Mumbai or New Delhi. You have to take another flight from there to Cochin and sometimes, you have to stay a night at Cochin if the situation says so. If you’re choosing a hotel which costs you Rs. 3000, then you have to pay 12% GST for Hotel and other service charges.

The below image is the bill details of a hotel in Cochin which is affordable for the common man where you can see Rs. 519 as tax and service fees. And another image shows the tax break down.

Certainly, the flight ticket rates vary whether you’re departing from Mumbai, Delhi, Bengaluru, or any location with abundant flights to Cochin. For a one-way economy class ticket from Delhi to Kochi, the prices range from Rs. 8000 to Rs. 12,500, inclusive of GST. On the other hand, a flight from Mumbai to Cochin is more economical, costing around Rs. 4000, including GST.

The detailed breakdown of the Mumbai flight ticket fare indicates that the base fare is Rs. 3,268, while taxes and surcharges amount to Rs. 622, resulting in a total of Rs. 3,890.

Let’s calculate the total GST for one person:

  1. Lakshadweep package 5% GST as shown in makemytrip – Rs. 1152.45.
  2. Flight GST and surcharges from Mumbai (may change according to your departure location) to Cochin airport- Rs. 622
  3. Hotel GST and service charges (if you stay in Hotel Cochin) – Rs. 519
  4. Flight GST and surcharges from Cochin to Agatti Island (Lakshadweep Airport) – Rs. 1088

For someone travelling from outside Kerala, the minimum budget for a Lakshadweep trip is Rs. 40,194 per person (calculated based on the Mumbai flight charge; prices may vary with flight charges) + Rs. 1000 (for dinner at Cochin). If you enjoy shopping, your expenses may increase accordingly. Nonetheless, this amount represents the minimum budget estimate for one person. The GST itself you have to pay around Rs. 3,500 and it is not bad as you are contributing to your own country.

And what about Maldives?? Yes, it is an international destination closest to India, but the expenses are relatively high for the average person. The minimum package for a 4-night stay in Maldives, inclusive of 2 flights and accommodation, is priced at Rs. 1,07,585 per person, which is twice the cost of Lakshadweep.

There are alternate packages reaching up to Rs. 2,08,316 per person for a 4-night stay, though the amenities may vary. All these are including taxes. If you want to do a purchase, then it costs outside. Therefore, if you intend to embark on a Maldives journey, it is advisable to have a minimum of Rs. 1,10,000 as your budget.

You are the one earning the income, and it is your prerogative to spend it wherever you please. Nevertheless, when selecting a destination, plan your budget wisely to ensure you don’t feel financially strained after the trip.

Note: The article outlines the minimum expenses tailored for an individual with the means to afford the specified prices. There are more expensive packages available, including business class and first-class flights, allowing you to select according to your budget.

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