Passenger Air Transport 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.

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996425 SAC Code GST Rate

Review old and new GST rates for Passenger Air Transport under 996425 SAC Code.

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.

SAC Code

996425

Description

Domestic/International Scheduled Air transport services of passengers

New Rate

5% with ITC or 18% with ITC

Old Rate

5% with ITC or 12% with ITC

Notes

Economy class is 5% (no credit on goods, credit on services allowed) and other classes are 18% with ITC, raised from 12% on 22 September 2025. Economy flights to or from the North-Eastern States and Bagdogra are exempt. Source: Notification 11/2017-Central Tax (Rate), S. No. 8(iii) and 8(v) as amended by 15/2025; Notification 12/2017-Central Tax (Rate), S. No. 15(a).

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.

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Practical Classification Guidance

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996425 and GST compliance.

What does SAC code 996425 cover in GST?

SAC 996425 covers scheduled passenger air transport services. It applies to regular domestic and international flights operated by airlines on fixed routes and timetables, where the main supply is carrying passengers by aircraft between airports under a published schedule.

Does SAC 996425 include scheduled domestic and international air transport?

Yes. Most scheduled flights operated by airlines, whether domestic or international, fall under SAC 996425. This includes economy, premium economy, business and first class, as long as the flights run on published routes and schedules and carry passengers as the primary service.

What is the GST rate on passenger air transport under SAC 996425?

For domestic travel, economy class tickets typically attract a concessional GST rate like 5%, while higher classes may be taxed at 12%. Many international tickets are either exempt or taxed only on the portion within India. The exact rate depends on current GST rules and fare type.

Are economy and business class tickets both billed under SAC 996425?

Yes. Both economy and business class tickets on scheduled flights are classified under SAC 996425. The SAC code does not change with class. Only the applicable GST rate and exemptions differ based on whether the ticket is economy, business or international.

Is ITC available on GST paid for SAC 996425 services for eligible businesses?

Businesses that buy air tickets for official travel can often claim ITC on GST charged on domestic tickets, subject to general conditions like use for business and not being blocked credits. For international tickets that are exempt from GST, there is usually no input tax credit component.

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Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.