As of September 22, 2025, GST on economy-class domestic and international air travel has been maintained at a low rate of 5%, benefiting budget-conscious travelers. However, for premium/business class, GST has been increased to 18%, replacing the previous 12% rate to tax luxury travel.
Economy class tickets on local airlines still cost 5% GST, the same as they did before the changes in September 2025. This ensures that people who fly economy don't have to pay more taxes. In the most frequent fare group, it also helps control GST on travelling expenses.
Most international flights from India are GST-exempt, but the domestic portion of the journey (such as a connecting flight within India) may still incur GST, which businesses can claim as input credit.
GST on leather, footwear, textiles, handicrafts, and toys reduced to 5% to boost youth-led MSMEs and exports. Essential learning materials like pencils, erasers, and exercise books made GST-free to ease education costs. GST on gyms/fitness centres slashed from 18% to 5%, making fitness more affordable and accessible.
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.
Subtracting GST from Price
To calculate how much GST was included in the price, divide the total price by 11 ($1000∕11=$90.91). To calculate the price without GST, divide the price by 1.1 ($1000∕1.1=$909.09).
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
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.
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.
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.
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.
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.
You can claim a GST refund in the following situations, when additional tax is paid or deposited due to errors or omissions. When dealers and deemed export goods or services are subject to refund or refund. Refunds can also be made for purchases made by UN agencies or embassies.
How to Avoid GST on Overseas Purchases Legally
By this update, taxpayers will not be able to file GST returns after three years from the due date of such return. The CBIC notified us of this change effective 1st October 2023, and the GSTN has now brought this validation live on the official GST portal starting from July 2025.
The GST Council's latest reforms have reshaped the GST tax slab for the travel and hospitality sector. With international and domestic travel steadily rising, these changes will directly affect how much you spend on air tickets, hotel bookings, dining, and even luxury travel.
The latest reforms mark a major simplification of the GST structure. The shift to a two-slab system of 5% and 18%, removing the earlier 12% and 28% rates, will make taxation more transparent and easier to follow.
Automobile sector reforms reduce GST from 28% to 18% on small cars, motorcycles (up to 350cc), buses, trucks, ambulances, and three-wheelers, while maintaining high rates for large luxury vehicles. Housing and infrastructure relief with GST on cement cut from 28% to 18%, easing construction costs.
Total Net GST revenue for October 2025 stands at ₹1,69,002 crore, which is 0.6% higher(monthly growth) and 7.1% higher (yearly growth) than the corresponding period last year at ₹1,68,054 crore.
Subtracting GST:
You could get up to: $533 if you are a single individual. $698 if you are married or have a common-law partner. $184 for each child under the age of 19.