Passenger Air Transport Services Under SAC Code 996425
Passenger air transport services cover scheduled flights that carry passengers on domestic and international routes. Airlines provide seats, in flight services and baggage handling for regular and seasonal flights. Under GST, these scheduled passenger air transport services are classified under SAC 996425. This SAC code and its GST rate decide how GST applies on taxable air tickets. This helps passengers save time on long routes and connect cities and countries efficiently.
Passenger Air Transport Services GST Rate for SAC Code 996425
Passenger air transport services under SAC 996425 are treated as scheduled passenger air travel under GST. Different rates may apply for domestic economy, domestic business and international routes as per government notifications.
After the September 2025 rationalisation, taxable passenger transport services under these codes generally fall in the 5 percent slab without input tax credit for standard transport models, while certain premium, charter or tourism oriented services can attract 18 percent with input tax credit. The exact rate and conditions depend on the latest GST notifications for each category.
The table below shows the latest standard GST rate for SAC code 996425 where the service is taxable.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996425 | Domestic/International Scheduled Air transport services of passengers | 5% without ITC or 12% with ITC | 5% without ITC or 18% with ITC | For scheduled air travel, economy class remains at 5% without ITC. Travel other than economy class moves from 12% with ITC to 18% with ITC. The applicable rate is driven by class of travel rather than a free choice between slabs. |
When issuing invoices for taxable passenger transport services under this SAC code, operators should clearly show the fare, the GST rate and the tax amount so that passengers and corporate clients understand the charge. The same SAC code and rate should be applied in GSTR 1 and GSTR 3B for outward supplies, and exempt services should be reported correctly wherever required.
Explore Other SAC Codes Under 9964
This SAC code is part of the passenger transport services group 9964, which covers local and long distance transport by road, rail, water and air, along with certain tourism and charter services. The six digit SAC codes under this group help separate city services, taxi services, intercity travel, ferries and sightseeing tours for GST reporting.
Below is a list of related six-digit SAC codes under 9964
Passenger transport operators should choose the SAC code that best matches the main type of service they provide. Correct SAC selection and correct use of 5 percent or 18 percent GST slabs, along with exemption rules where applicable, help reduce disputes, maintain a clear tax trail and make GST returns easier to explain during scrutiny or audits.
Conclusion
Passenger air transport services under SAC 996425 cover scheduled flights on domestic and international routes. Taxable air travel now fits into the rationalised 5 percent and 18 percent slabs based on ticket class and route as per notifications. Airlines and travel agents should classify tickets correctly, charge the right GST rate and ensure consistent treatment in GST returns. For connecting flights and special schemes, it is sensible to review the latest GST notifications and consult a tax professional.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.