Weddings in India are known for being big, fat, and expensive. It’s no wonder that the Indian wedding industry is valued at a whopping $130 billion. But what if we told you there are clever ways to save thousands, if not lakhs, on your big day? Let’s get into some wedding budget planning hacks.

Save on GST

Did you know that nearly 60% of a wedding budget typically goes towards the venue and food? Here’s a little-known secret: GST rates can vary significantly depending on how you book these services. Are you booking a standalone banquet hall? You’re looking at an 18% GST. Book a banquet hall in a hotel and that drops to 12%. But here’s where it gets interesting – if you take catering services from the same hotel, the GST reduces to just 5%.

But wait, there’s a catch. If you plan to book rooms for your guests at the hotel, keep an eye on the price tag. Rooms costing ₹7,500 or less per day maintain that 5% GST rate. Cross that threshold, and you’re back to 18% GST, whether or not you combine the venue and catering services.

Now, you might be tempted to go all in and book everything – venue, catering, decor, and photography – as a package deal from the hotel. Not so fast! Tax authorities don’t consider decor and photography part of the wedding bundle. If you combine these services, you’re again looking at 18% GST on the entire package, because photography and decor come with 18% GST. 

Here’s a pro tip: If you want to stick with one vendor for everything, ask for two separate bills – one for venue and catering and another for decor and photography. So, your GST on venue and catering will be just 5%, and on photography and decor, it will be 18%. 

If your venue and catering combined cost ₹3,50,000, 5% GST on it will be ₹17,500. If your photography and decor cost ₹1,00,000, 18% GST on these services will be ₹18,000. Together, the GST amounts to ₹35,500. But if your venue, catering, photography, and decor together cost ₹4,50,000, 18% GST on it will be ₹81,000.

Gifts are tax-free

Let’s talk about gifts – an essential of Indian weddings. Whether it’s cash, gold, or even a car, wedding gifts in India are tax-exempt. Yes, you read that right. You can deposit cash or gold gifts in the bank, simply stating they’re wedding gifts. But remember, this golden opportunity only applies to your first wedding.

Related: 10 Useful Wedding Gifts For Newlyweds Who Are Moving Into Their Own Home

Looking for more ways to save? Consider using special shopping or cashback credit cards for your wedding expenses. Cards like the Amazon Pay ICICI Credit Card, Flipkart Axis Credit Card, or Myntra Kotak Credit Card can give you an extra 5-7% discount or cashback on purchases from their platforms. SBI cashback credit cards offer rewards on both online and offline purchases. You can learn more about these cashback credit cards here. It might not sound like much, but when you’re spending lakhs on wedding shopping, those savings add up fast.

While Indian weddings may be famous for their grandeur and expense, smart wedding budget planning goes a long way. With these tips and tricks, you can have the wedding of your dreams without emptying your bank account. Now that’s something worth celebrating.

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Related: A Week Before The Wedding: The Ultimate 10-Point Checklist For Brides