New GST on Flight Tickets in India: Rates, HSN Codes & Fare Breakdown
Quick Summary
- The new GST rates for flight tickets in India are 5% for economy class and 18% for business class, effective after September 22, 2025.
- GST is charged on both domestic and international flights originating from India, and airlines include it in the ticket price.
- Businesses can claim Input Tax Credit (ITC) on business class tickets if booked under a company name and used for business purposes.
- International flights from India incur GST only if the flight originates in India, with 5% for economy and 18% for business class.
Whether you’re flying for business or leisure, your airline ticket includes more than just the base fare. One major component is Goods and Services Tax (GST), which varies based on travel class and flight type. In this blog, we’ll break down the gst on air tickets, explain how rates differ between economy and business class, and what travelers and businesses need to know about claiming Input Tax Credit (ITC) .
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New GST Rate on Air Travel in India
GST on air travel in India depends on the class of travel. From 22 Sep 2025, economy class continues at 5%, while air travel in other than economy class attracts 18%. GST generally applies where the passenger embarks in India for the continuous journey.
Air Travel GST Rate Comparison
| Travel Class | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) |
|---|---|---|
| Economy Class | 5% | 5% |
| Business Class / Other than Economy Class | 18% | 12% |
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SAC Code for Air Travel Services
| Service Type | SAC Code | GST Rate |
|---|---|---|
| Domestic and international scheduled air transport of passengers | 996425 | 5% for economy, 18% for other than economy |
| Domestic and international non-scheduled air transport of passengers | 996426 | Check applicable classification and contract terms |
| Charter flights and helicopter services | Check exact SAC and nature of service | Commonly 18%, subject to classification |
This rate applies to both domestic and international flights departing from India. Airlines charge the GST as part of your ticket price and deposit it with the government.
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How to Calculate GST on Flight Tickets
To calculate GST on a flight ticket, first identify the class of travel and then apply the GST rate on the taxable ticket value.
Formula:
GST Amount = Ticket Value × GST Rate ÷ 100
Total Ticket Price = Ticket Value + GST Amount
Example 1
Economy class ticket price: Rs 4,000
GST @ 5% = Rs 200
Total Ticket Price = Rs 4,200
Example 2
Business class ticket price: Rs 15,000
GST @ 18% = Rs 2,700
Total Ticket Price = Rs 17,700
So, GST on flight tickets can significantly increase the final fare for higher travel classes.
GST on International Flights
For international air travel, GST generally applies when the continuous journey starts in India. If the passenger embarks from India, GST may apply based on the class of travel. If the journey starts outside India, the GST position may vary depending on the place of embarkation and the applicable supply rules.
Input Tax Credit on Air Tickets
Businesses should avoid using a blanket rule that ITC is available only on business class and not on economy class. ITC eligibility depends on the nature of the expense, business use, tax invoice details, and blocked credit provisions under GST law.
As a practical rule, businesses should ensure:
- the booking is for business purposes
- the tax invoice is in the business name
- GST details are correctly mentioned
- the credit is not blocked under GST law
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GST on Ancillary Charges
Airlines may also levy GST on additional services linked to air travel, such as:
| Service | GST Treatment |
|---|---|
| Extra baggage fees | Usually taxed separately as per applicable service classification |
| Seat selection charges | Usually taxed along with the related travel service or applicable airline charge |
| Lounge access | Often taxed separately based on the nature of the service |
| On-board or pre-booked food | Depends on the nature of supply and invoicing |
Since ancillary charges can vary by invoice structure and airline treatment, the exact GST should be checked on the ticket or invoice.
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Final Thoughts
Understanding GST on flight tickets helps travellers and businesses read fare breakups more clearly. Economy class remains at 5%, while other than economy class is higher after 22 Sep 2025. For businesses, GST (Goods and Services Tax) treatment should be reviewed carefully before claiming ITC, especially for corporate travel and bundled airline charges.
