GST on Flight Tickets – Rates for Economy & Business Class

Rambha, flying for the first time from Bhopal to Delhi, stared at her flight ticket. One line puzzled her:
 “GST: ₹452”

She asked the airline staff, “Yeh GST kya hai?”

The staff smiled, “It’s Goods and Services Tax. On domestic flights:

• Economy class: 5% GST
• Business class: 12% GST.”

Rambha did quick math. “So if ₹452 is 5%, my base fare must be ₹9,040?”

“Exactly,” the staff replied.

She was amazed. “If I flew business class, GST would’ve been ₹1,084.80!”

“Correct,” the staff nodded. “Also, flights to certain regions like the Northeast or Bagdogra are GST-exempt under the UDAN scheme.”

Rambha chuckled, “Sarkar hawa mein bhi tax leti hai!”

Her flight was called. With a smile and a little more knowledge, she walked to the gate, ready for the skies and the taxes that come with them.

What is GST on Flight Tickets?
 

Key Notes:
 

• GST is applicable on the base fare only, not on airport taxes or fuel surcharges.
   
• GST paid on business travel may be eligible for Input Tax Credit (ITC) under applicable rules.
   
• Flights under certain government schemes (e.g. UDAN, remote region routes) may be GST-exempt.

GST on Flight Tickets- Domestic and International Flight Tickets
 

Note: International flights departing from India are subject to GST. However, if the ticket is booked from outside India (ex-India), GST is not applicable.

Example: Consider a domestic economy class flight ticket with a base fare of ₹2,000:

• GST Calculation: ₹2,000 × 5% = ₹100
• Total Fare: ₹2,000 + ₹100 = ₹2,100

For a business class ticket with a base fare of ₹5,000:

• GST Calculation: ₹5,000 × 12% = ₹600
• Total Fare: ₹5,000 + ₹600 = ₹5,600

For international flights, if the base fare is ₹10,000:

• GST Calculation: ₹10,000 × 5% = ₹500
• Total Fare: ₹10,000 + ₹500 = ₹10,500

Claiming Input Tax Credit (ITC)

Businesses can claim ITC on GST paid for flight tickets if:

• The travel is for business purposes (e.g., attending meetings, conferences).
   
• The GST invoice includes the business's GSTIN.
   
• The flight booking was made using the business's GSTIN.
   
• To claim ITC, ensure proper documentation and compliance with GST rules.

GST on Flight Tickets Exemptions: When You Don’t Have to Pay?
 

Under the Goods and Services Tax (GST) regime, certain air travel services are exempt from tax to promote regional connectivity and reduce travel costs. Here's an overview of when GST is not applicable on flight tickets:
 

• Economy class flights to/from the northeastern states of India (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura) and Bagdogra in West Bengal.
   
• Flights under the Regional Connectivity Scheme (UDAN).
   
• International flight tickets booked from outside India (Ex-India) are generally exempt from GST. However, if the ticket is booked from India, GST applies. This distinction is crucial for travellers and businesses to understand.

These exemptions aim to promote connectivity and economic development in underserved regions.

Example: GST Exemption on Flight Tickets
 

Let’s take another example of Rambha, who books a flight in economy class from Guwahati (Assam) to Imphal (Manipur) — both cities are in the Northeastern region of India.

Base Fare: ₹2,500
GST Rate: 0% (exempt under GST rules for economy class in Northeastern states)
GST Charged: ₹0
Total Fare Payable: ₹2,500

Explanation:

Under Notification No. 12/2017 – Central Tax (Rate) issued by the GST Council, economy class air travel to or from the Northeastern states and Bagdogra is exempt from GST. Since both Guwahati and Imphal fall under this exemption zone, Rambha pays no GST on her ticket.

GST on Flight Tickets: What You’re Paying For?
 

Example: Total Ticket Cost with GST
 

Conclusion of GST on Flight Tickets
 

GST on flight tickets helps the government collect tax fairly and transparently. It applies differently to economy and business class tickets, with lower rates for economy travel. Understanding GST on air travel makes it easier for passengers to know what they are paying for and plan their expenses better.

FAQs: Common Questions About GST on Flight Tickets

Q. Can I get a GST invoice after booking my ticket?

Yes, most travel portals and airlines allow you to enter your GSTIN at the time of booking and generate a GST-compliant invoice.

Q. What happens if I cancel my flight? Will GST be refunded?

GST is usually non-refundable if the ticket is cancelled unless the airline policy allows for a full refund, including tax. Always check the refund policy at the time of booking.

Q. Is GST charged on the total fare or only the base fare?

GST is charged only on the base fare of the ticket. Other charges like fuel surcharge, airport fees (CUTE, UDF, PSF) are not included in the GST calculation.

Q. Where can I find the GST amount on my air ticket?

The GST amount is mentioned on your e-ticket or invoice, usually under the label CGST, SGST, or IGST, depending on the nature of travel.

 

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