GST Rate on Domestic And International Flight Tickets 2025 - Everything You Need to Know

The GST plays a significant role in determining travel costs for passengers in India. The GST slab for flight tickets is distributed across 5% and 12%, depending on the ticket type. GST applies to both domestic and international flight tickets, making it essential for travellers to understand these charges. As civil aviation emerges as a booming sector of the Indian economy, staying informed about GST rates is important. Economy class tickets generally attract a GST rate of 5%, while business class tickets are subject to a 12% GST rate. This article provides detailed information on GST rates on flight tickets, including GST on domestic flight tickets, GST on international flight tickets, post-GST effects on travel cost charges and how to claim ITC under GST.

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What is GST on Flight Tickets?

GST on flight tickets typically falls within the 5% or 12% tax brackets, depending on the type of flight and class of travel. Whether you are a regular flyer, a business traveller, or someone who wants to understand GST on air travel, this section details the applicable GST rates for both domestic and international flight tickets,

GST on Domestic Flight Tickets

GST on International Flight Tickets

Also read: GST rate for Goods and Services in India

GST on Flight Tickets: Before and After GST

Before the implementation of GST, flight tickets were subject to multiple taxes, including VAT, service tax, surcharges, airport charges, and Common User Terminal Equipment (CUTE) fees. Among these, service tax was the primary levy on air travel, applied at varying rates depending on the class of travel. Economy-class tickets attracted a service tax rate of 5.6%, while business-class tickets were taxed 8.4%.

With the introduction of GST, the taxation system for flight tickets became more streamlined and uniform. As previously described, economy-class tickets, whether for domestic or international travel, now attract a flat GST rate of 5%. For premium economy, business class, and first-class tickets, a GST rate of 12% applies uniformly across both domestic and international travel. This simplified structure has made it easier for passengers to understand tax implications, ensuring transparency and consistency in pricing.  

Learn more: GST on services 

Example of GST on Flight Tickets: Pre-GST vs Post-GST

Below, we have provided examples of air ticket GST for Pre-GST and Post-GST to gain even more clarity,

Example of Pre-GST for Flight Tickets:

Example of Post-GST for Flight Tickets:

Claiming Input Tax Credit (ITC) for GST on plane tickets is applicable only if the travel is directly associated with your business activities. Such activities may include attending conferences, client meetings, site inspections for potential business opportunities, or discussions with suppliers and vendors.

Step 1: Provide Your Business GST Number During Booking

In regards to flight booking GST, make sure to input your business’s GST number. This ensures the airline issues a GST-compliant invoice, which is necessary for claiming ITC.

Step 2: Obtain a Detailed GST Invoice Post-Flight

After completing your flight, request a GST invoice from the airline. The invoice must include:

• Invoice number
• Date of issue
• Airline’s name and GST number
• Your business’s name and GST number
• Flight details (origin, destination, and date)
• Total amount paid
• GST amount

Step 3: Maintain Records of Invoices and Itineraries

Keep a copy of the GST invoice along with the corresponding flight itinerary. These records are vital for verifying and claiming ITC during audits or reconciliations.

Step 4: Claim ITC in Your GST Returns

Use the GST amount specified on the invoice to claim ITC in your GST returns. Properly filing this claim helps reduce business travel expenses and optimize tax benefits.

Also read: Types of GST returns

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How to Claim ITC for Cancelled Flight Tickets?

When a flight is cancelled, businesses may wonder if they can claim GST. The answer depends on the airline’s cancellation process and refund issuance.

• Refunds with GST Reversal: If a business receives a full refund, including GST, ITC cannot be claimed as the GST is reversed by the airline.
• Partial Refunds or Non-Refundable Tickets: For partial refunds or non-refundable tickets, businesses can claim ITC on the non-refunded GST amount. Ensure the cancellation terms are stated, and the invoice reflects the updated cancellation details.
• Required Documentation: Retain the original GST invoice and any cancellation-related communication for ITC claims. This is essential in case tax authorities audit the claim.

Conclusion

In conclusion, claiming ITC for cancelled flight tickets depends on the refund process and whether GST is reversed by the airline. Businesses can claim ITC on the non-refunded GST amount for partial refunds or non-refundable tickets, while full refunds mean no ITC can be claimed. It is essential to retain proper documentation, including the original GST invoice and cancellation details, to support claims. Additionally, businesses should adjust their GST returns accordingly to reflect the cancellation and any GST reversals, ensuring compliance and avoiding discrepancies in the filing process.

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FAQs

1. What is the GST rate on flight tickets in India?

GST on flight tickets is either 5% for economy class or 12% for business class, applicable to both domestic and international flights.

2. Is GST applicable on both domestic and international flight tickets?

Yes, GST is applicable on both domestic and international flight tickets, with different rates based on the class of travel.

3. What was the tax structure for flight tickets before GST?

Prior to GST, flight tickets were subject to multiple taxes, including VAT, service tax, surcharges, and CUTE fees, with service tax rates of 5.6% for economy and 8.4% for business class.

4. How does GST impact the cost of flight tickets?

GST streamlines the taxation of flight tickets, reducing complexities. Economy tickets attract a 5% GST, while business class tickets attract 12%.

5. Can businesses claim Input Tax Credit (ITC) on flight tickets?

Yes, businesses can claim ITC on air ticket GST if the travel is related to business activities such as attending conferences, meetings, or inspections.

6. What is the process to claim ITC on flight tickets?

To claim ITC, businesses must provide their GST number during booking, obtain a GST-compliant invoice after the flight, maintain the invoice and itinerary, and then claim ITC in their GST returns.

7. Can businesses claim ITC for cancelled flight tickets?

If the business receives a full refund including GST, ITC cannot be claimed. For partial refunds or non-refundable tickets, ITC can be claimed on the non-refunded GST amount.

8. What documents are required to claim ITC for flight booking GST?

Businesses must retain the original GST invoice and cancellation communication for claiming ITC, especially in case of audits or reconciliations.

9. How does GST on business class tickets differ from economy class tickets?

Business class tickets are subject to a 12% GST rate, while economy class tickets are taxed at 5%.

10. What changes occurred in flight ticket taxation after GST implementation?

GST replaced multiple taxes, offering a uniform tax rate of 5% for economy class and 12% for business class, simplifying the taxation process for both domestic and international flights.

11. How does a full refund for a cancelled flight affect ITC claims?

If a full refund, including GST, is received for a cancelled flight, ITC cannot be claimed as the GST is reversed by the airline.

12. How should businesses account for GST on plane tickets in their GST returns?

Businesses should ensure that GST amounts are reflected correctly in their GSTR-3B form and adjust returns to reflect any GST reversals for cancelled flights.

13. What happens if the airline charges a surcharge on flight tickets?

The surcharge is included in the total GSTable amount, and GST is applied to the entire amount, including surcharges.

14. How do partial refunds on flight tickets affect ITC claims?

For partial refunds, businesses can claim ITC on the GST amount for the portion of the ticket that was not refunded.

15. Is GST charged on additional flight charges like fuel and service fees?

Yes, GST is applicable on additional flight charges such as fuel charges, CUTE fees, and passenger service fees, depending on the ticket class.