GST on Flight Tickets in India: Rates, HSN Codes & Fare Breakdown

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 flight tickets, explain how rates differ between economy and business class, and what travelers and businesses need to know about claiming Input Tax Credit (ITC).

BOOK A FREE DEMO




    GST Rates

    GST Rate on Flight Tickets

    GST on air travel in India is based on the class of travel:

    Travel Class Levied By
    Economy Class 5%
    Business Class 12%

    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.

    Get a Free Trial – Best Accounting Software For Small Business

    HSN Code for Air Travel Services?

    Air travel services fall under HSN Code 9964, specifically:

    Service Type HSN Code GST Rate
    Air transport of passengers 996422 5% / 12%
    Charter flights or helicopter services 996423 18%

    These codes help categorize the type of service for invoicing and GST filing.

    GST Calculation Example on Flight Tickets

    Let’s say you book a one-way economy ticket for ₹4,000:

    • GST @5% = ₹200
    • Total Ticket Price = ₹4,200

    Now let’s consider a business class ticket worth ₹15,000:

    • GST @12% = ₹1,800
    • Total Ticket Price = ₹16,800

    So, the gst on flight ticket significantly affects higher-class fares.

    Input Tax Credit (ITC) on Air Tickets

    For Businesses:
    • ITC is not available on economy class tickets
    • ITC is allowed on business class tickets, provided:
    • The booking is in the company’s name
    • The airline issues a tax invoice with GSTIN
    • The trip is for business purposes

    This allows businesses to reduce their net GST liability.

    Get a Free Trial – Best Accounting Software For Small Business

    GST on International Flights

    For international travel, GST is applicable only if:

    • The flight originates in India
    • The airline is registered under GST

    In such cases:

    • Economy class – 5% GST
    • Business class – 12% GST

    If the flight originates from outside India, no GST applies under the Indian tax laws.

    GST on Ancillary Charges

    Airlines also levy GST on additional services such as:

    Service GST Rate
    Extra baggage fees 18%
    Seat selection charges 5% / 12% (based on class)
    Lounge access 18%
    On-board food (pre-booked) 5%

    So even your seat upgrade or extra luggage can attract GST.

    Explore a Free Demo of – Best Inventory Management Software For Small Business

    Final Thoughts

    Understanding the gst on flight tickets helps travelers decode their fare breakdown. While the 5% GST for economy class is relatively modest, business class travelers and companies should take note of the 12% rate and potential for ITC. Whether you’re flying within India or heading overseas, knowing how GST (Goods and Services Tax) works can help you optimize costs and stay compliant.

    Frequently Asked Questions (FAQs)

    • What is the GST rate on economy class tickets?
      5% GST is charged on economy class fares.
    • Do I pay GST on international flights?
      Yes, if the flight originates in India. GST is charged at 5% or 12% depending on the class.
    • Can I claim ITC on air travel for business?
      Only if you’re flying business class and the ticket is booked under a GST-registered business account.
    • Is GST applicable on baggage fees and other add-ons?
      Yes, add-ons like baggage, food, and seat selection attract 5% to 18% GST.
    • How do I know if GST was applied to my ticket?
      Your airline ticket invoice will list the GST amount and applicable HSN code.
    View all FAQs
    Please Wait

    BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.

    phone Sales & Support:

    +91 82 82 82 82 82
    +91 11 - 4096 4096
    Copyright © BUSY Infotech Pvt. Ltd. All Rights Reserved