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GST on Flight Tickets
The GST on flight tickets generally falls under the 5% or 12% tax bracket. Whether you’re a frequent flyer, a business traveler, or simply curious about GST, this article will provide you with the exact information about flight ticket GST rates.
Flight Type |
Flight Class |
GST Rate on flight tickets |
|
Domestic |
Economy |
5% |
|
Domestic |
Business |
12% |
|
International |
Economy |
5% |
|
International |
Business |
12 % |
According to CBIC Heading 9964, economy class air travel to or from the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, or Bagdogra in West Bengal is exempt from GST on flight tickets. Moreover, air travel beginning from or terminating in any airport within the regional connectivity scheme airports shall be exempt from GST.
Related Read: GST Rates List in India 2025
Pre GST Vs Post GST Impact on Flight Tickets
Pre-GST, several taxes were applicable on flight tickets. These taxes could range from VAT and service tax to surcharges, airport charges, and CUTE fees. Service tax was however the main tax levied on flight tickets at the rates mentioned below:
Flight Class |
Tax Rate |
|
Economy |
5.6% |
|
Business |
8.4% |
Post-GST, the GST on flight tickets has been made uniform for all economy-class travel, domestic or international, at 5%. Meanwhile, all premium economy, business, and first-class flight tickets will be charged GST at 12%, whether the travel is domestic or international.
Related Read: GST on Services in India 2024
Example of Taxation of Flight Tickets: Pre-GST Vs. Post-GST
Charges |
Economy Tickets pre-GST (in INR) |
Economy Tickets post-GST (in INR) |
|
Base Airfare |
1000 |
1000 |
|
Airline Fuel Charge |
350 |
350 |
|
CUTE Fee (Common User Terminal Equipment) |
25 |
25 |
|
Passenger Service Fee |
119.5 |
119.5 |
|
User Development Fee |
75 |
75 |
|
Airline Service Tax (5.6%) |
56 |
– |
|
GST(5%) |
– |
50 |
|
Surcharge |
6 |
6 |
|
Total Charge |
1631.5 |
1625.5 |
Charges |
Business Tickets pre-GST (in INR) |
Business Tickets post-GST (in INR) |
|
Base Airfare |
4000 |
4000 |
|
Airline Fuel Charge |
1400 |
1400 |
|
CUTE Fee (Common User Terminal Equipment) |
100 |
100 |
|
Passenger Service Fee |
350 |
350 |
|
User Development Fee |
200 |
200 |
|
Airline Service Tax (8.4%) |
336 |
– |
|
GST(12%) |
– |
480 |
|
Surcharge |
50 |
50 |
|
Total Charge |
6436 |
6580 |
Claiming ITC on Flight Tickets: A Step-by-Step Guide
The Goods and Services Tax (GST) regime allows businesses to claim input tax credit (ITC) on the taxes paid on goods and services used for business purposes. This includes travel expenses like GST on flight tickets. To claim ITC on flight tickets, the travel must be directly related to business activities. This typically includes attending conferences and client meetings, inspecting potential business locations, meeting with suppliers or vendors, etc.
Related Read: Types of GST Returns with Due Dates In 2024
How to Claim ITC?
STEP 1: Provide Your Business GST Number During Flight Booking
When booking a flight ticket, ensure you provide your business entity’s GST number. This information enables the airline to generate a GST invoice for your records.
STEP 2: Request a Detailed GST Invoice After Your Flight
After your flight, request a GST invoice from the airline. The invoice should include the following details:
- Invoice Number
- Date of Issue
- Name and GST Number of the Airline
- Name and GST Number of Your Business
- Flight Details (origin, destination, date)
- Total Amount
- GST Amount
STEP 3: Keep a Record of the GST Invoice and Itinerary
Maintain a record of the GST invoice along with the corresponding flight itinerary. This documentation is essential for future reference.
STEP 4: Claim Input Tax Credit (ITC) in Your GST Returns
In your GST returns, claim the Input Tax Credit (ITC) based on the GST amount specified on the invoice. This step is crucial for reducing your business travel expenses.
FAQ
1. What is the GST on international flight tickets?
The GST on flight tickets for international travel is set at 5% for economy-class tickets and 12% for premium economy, business, and first-class tickets.
2. Is GST applicable on ancillary services like seat selection and extra baggage?
Ancillary services are considered bundled supplies with air travel for passengers. Therefore, they cannot be taxed in isolation and are taxed at the same rate as the service. To be clear, ancillary services at taxed at 5% for economy class and 12% for business class.
3. Do I get a GST invoice for my flight ticket?
Yes, airlines usually issue a GST invoice right after ticket booking confirmation or after the travel. Ensure that your business GSTIN is entered correctly at the time of booking.
4. Is there GST on chartered flights or private jets?
Yes, chartered flights attract a GST rate of 5% if used for religious purposes.
5. What is the GST rate on air cargo services?
The transportation of goods from India to a place outside of India(outbound freight) depends on the place of supply while the opposite(inbound freight) is tax-exempt. On the other hand, domestic air cargo attracts a GST rate of 18%.
