--- title: "New GST on Flight Tickets 2026: 5% Rate on Air Tickets" description: "New GST rate on flight tickets in 2026 is 5% on economy and domestic air travel bookings. Simplify GST billing with Busy and apply the right rate every time." canonical: "https://busy.in/gst-rates/flight-tickets/" author: "Madan Murari" published: "2025-04-29T12:14:02.000Z" category: "GST Rates" --- - 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. # New 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 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)**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) **.** ## 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% | **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ![GSTRate on Flight Tickets in India](https://busy-client.busy.in/media/9.png) Live Demo Available Today ## Track TCS on High-Value Flight Ticket Transactions Automatically Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **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 **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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. Explore a Free Demo of – [Best Inventory Management Software For Small Business](https://busy.in/accounting-software/inventory-management/) ## **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)**](https://busy.in/gst/) treatment should be reviewed carefully before claiming ITC, especially for corporate travel and bundled airline charges. ## About the author **Madan Murari** Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone! ## Frequently asked questions ### What is the GST rate on economy class tickets? Economy class air tickets attract 5% GST. ### What is the GST rate on business class tickets? Other than economy class air travel attracts 18% GST after 22 Sep 2025. ### Do I pay GST on international flights? GST generally applies when the continuous journey embarks in India. ### Can I claim ITC on air travel for business? ITC depends on eligibility under GST law, business use, invoice details, and blocked credit rules. It should not be treated as a simple economy vs business class rule. ### Is GST applicable on baggage fees and other add-ons? Yes, additional airline services may attract GST separately depending on the nature of the charge. ### How do I know if GST was applied to my ticket? Your airline invoice or ticket breakup usually shows the GST amount and tax details. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)