Yes, you generally pay Goods and Services Tax (GST) on flights, but the applicability depends on the country and route. In India, domestic economy flights have a 5% GST, while business/premium class is taxed at 18%. International flights from India also incur GST, whereas in Canada, international flights are usually GST/HST-free.
Transition Rule for Air Ticket Bookings
If you booked and paid for a premium-class ticket before September 22, 2025, the old 12% GST rate applies, even if you travel after this date. However, any new bookings or re-ticketing made on or after September 22, 2025, will be charged the new 18% GST rate.
For all transborder flights for Canadian citizens and for transportation commencing in Canada, GST is applied to base fare, Nav and Surcharges, and ATSC charges. For all Canadian domestic flights excluding Quebec, HST applies to base fare, Nav and Surcharges, AIF, and ATSC charges.
Air Travel New GST Reforms
The reforms also impact air travel, making domestic flights more affordable for the majority of travelers: Economy-class domestic flights will continue to attract a 5% GST. Business and premium domestic flights will now have an 18% GST, up from the previous 12% for some categories.
GST applies to domestic air travel, other than where: a domestic flight forms part of a ticket for international travel or is cross-referenced to an international ticket and is purchased at any time up to and including the date of international travel, or.
Can I claim GST on flight tickets for personal travel? No, GST cannot be claimed for booking tickets for personal travel. Input Tax Credit (ITC) is given only for flight tickets booked under the company GSTIN with correct invoicing for business purposes.
The taxes and fees for domestic air travel in Canada include: - 5% - 15% GST / HST - $7.12 Air Travellers Security Charge (ATSC) each way up to $14.25 - $5-$30 in Airport Improvement fees (no limits) A $600 round trip flight within Canada could be subject to $165 in taxes and fees (over 27% increase from base fare).
GST/HST/QST: Where applicable, these taxes are collected on flights and services provided in Canada. Generally, where the travel originates in the United States or the journey includes an international origin or destination, these taxes do not apply.
Tickets up to Rs. 100 attract 5% GST, while those above Rs. 100 attract 18%. Convenience fees charged by ticketing platforms are subject to GST as a separate component.
To avoid these extra costs, consider booking directly through the airline's official website or contacting customer service for assistance. But there is good news: Airline Loyalty Programs can help offset some of the hidden taxes and fees. Earning and redeeming miles can lead to discounted fees or even free flights.
For all transborder flights for Canadian citizens and for transportation commencing in Canada, GST is applied to base fare, Nav and Surcharges, and ATSC charges. For all Canadian domestic flights excluding Quebec, HST applies to base fare, Nav and Surcharges, AIF, and ATSC charges.
What is the GST for tours and travels in India? 5% GST applies on tour packages without ITC. If services are itemized, rates vary from 5% to 18%.
Additional mandatory government fees quickly add to the cost:
The amount you pay in taxes and fees on a ticket depends on factors such as your itinerary, the number of flight segments, and whether you're flying domestically or internationally. For domestic flights, taxes include federal excise taxes, security fees, and airport-specific charges.
In India, the GST (Goods and Services Tax) on flight tickets varies based on the class of travel. For economy class tickets, the GST rate is 5%, while for business class tickets, it is 12%. These rates apply to both domestic and international flights.
Additional Taxes and Fees. Prices include: Base Fare and Carrier imposed fees. 7.5% U.S. government excise tax.
The Canadian Goods and Services Tax (GST) is a federal tax set at 5%, but the total sales tax you pay (5% GST + Provincial Sales Tax/PST) can be higher, like 7% (PST) in BC/Manitoba, or combined into a Harmonized Sales Tax (HST) that varies by province, such as 13% in Ontario or 15% in Atlantic provinces. So, GST is always 5%, but the combined rate depends on the province.
The GST rate on flight tickets depends on the travel class: 5% for economy class and 18% for business or premium class, applicable to both domestic and international travel.
Notably, most online ticketing platforms, such as BookMyShow or PayTM, already include the applicable GST in the displayed ticket prices. This means that consumers do not have to worry about calculating the GST separately while making their bookings.
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.