GST Rates on Domestic & International Flight Tickets 2025: Complete Guide

Introduction

GST significantly impacts travel costs for passengers in India. Flight ticket GST rates are divided between 5% and 12%, depending on the class of the ticket. Both domestic and international flight tickets are subject to GST, making it important for travelers to understand these charges. As civil aviation continues to grow as a key sector in the Indian economy, staying updated on GST rates is crucial. Typically, economy class tickets attract a 5% GST rate, while business class tickets are taxed at 12%. This article offers a comprehensive overview of GST rates on flight tickets, covering domestic and international flights, the effects of GST on travel expenses, and how to claim Input Tax Credit (ITC) under GST

What is GST on Flight Tickets?

GST on flight tickets in India is charged at either 5% or 12%, depending on the type of flight and travel class. Whether you’re a frequent flyer, business traveler, or simply want to understand how GST affects air travel, this section explains the applicable GST rates for both domestic and international flights.

GST on Domestic Flight Tickets

Flight Class	GST Rate on Flight Tickets
Economy	5%
Business	12%

GST on International Flight Tickets

Flight Class	GST Rate on Flight Tickets
Economy	5%
Business	12%

Also read: GST rate for Goods and Services in India

GST on Flight Tickets: Before and After GST

Before GST, flight tickets were subject to various taxes including VAT, service tax, surcharges, airport fees, and Common User Terminal Equipment (CUTE) charges. The primary tax was service tax, which varied by class—economy class faced 5.6%, while business class was taxed at 8.4%.

With GST’s introduction, the taxation system became more straightforward. Economy class tickets, for both domestic and international travel, now have a uniform GST rate of 5%, while business, premium economy, and first-class tickets attract a flat 12%. This uniformity has simplified tax calculations, increased transparency, and made pricing more consistent.

Learn more: GST on services

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

Charges	Economy Tickets (INR)	Business Tickets (INR)
Base Airfare	1200	5000
Airline Fuel Charge	400	1600
CUTE Fee (Common User Terminal)	30	120
Passenger Service Fee	150	400
User Development Fee	85	250
Service Tax (Pre-GST) (5.6% Economy, 8.4% Business)	104	624.12
Surcharge	10	60
Total Charge (Pre-GST)	1979	8054

Charges	Economy Tickets (INR)	Business Tickets (INR)
Base Airfare	1200	5000
Airline Fuel Charge	400	1600
CUTE Fee (Common User Terminal)	30	120
Passenger Service Fee	150	400
User Development Fee	85	250
GST (Post-GST) (5% Economy, 12% Business)	93.75	891
Surcharge	10	60
Total Charge (Post-GST)	1968	8321

How to Claim Input Tax Credit (ITC) for Flight Tickets?

Input Tax Credit (ITC) on flight tickets can be claimed only if the travel is directly related to your business activities—such as attending meetings, conferences, or site inspections.

Step 1: Provide Your Business GST Number at Booking
Enter your business GST number when booking your flight. This ensures you receive a GST-compliant invoice, necessary for claiming ITC.

Step 2: Obtain a Detailed GST Invoice After Your Flight
Request a GST invoice from the airline that includes:

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

Step 3: Keep Records of Invoices and Itineraries
Maintain copies of your GST invoices and flight itineraries. These documents are essential for audit and verification purposes when claiming ITC.

Step 4: Claim ITC in Your GST Returns
Use the GST amount from the invoice to claim Input Tax Credit while filing your GST returns. This helps reduce your overall business travel expenses and maximizes tax benefits

How to Claim ITC for Cancelled Flight Tickets?

When a flight is cancelled, the ability to claim Input Tax Credit (ITC) depends on how the airline processes the cancellation and refunds.

Refunds with GST Reversal: If you receive a full refund including GST, you cannot claim ITC because the airline reverses the GST charged on the ticket.
Partial Refunds or Non-Refundable Tickets: In cases where only a partial refund is issued or the ticket is non-refundable, you may claim ITC on the portion of GST that is not refunded. Make sure the cancellation terms are clearly mentioned, and the updated invoice reflects the cancellation details.
Documentation Required: Keep the original GST invoice and all correspondence related to the cancellation. These documents are crucial for supporting your ITC claim if it is audited by tax authorities

About the Author

Rohan

Rohan is a skilled content writer specializing in business registration, tax laws, trademark regulations, and company compliance. His well-crafted articles provide clear, practical guidance, empowering businesses to confidently navigate and resolve complex legal and regulatory issues

May 31, 2025

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