GST on Flight Tickets & Air Travel India 2026

Updated: 3 June 2026 | CGST Act 2017 | GST Council Rate Notifications

GST on domestic airline tickets: 5% for economy class and 12% for business class. International flights departing from India are zero-rated (0% GST) as they qualify as export of service. Cancellation charges on any ticket attract 18% GST. Helicopter travel also attracts 5% GST. UDF/ADF airport fees are exempt from GST.

5% / 12%

Economy class 5% GST | Business class 12% GST on domestic flights
International departures from India: 0% GST (zero-rated export of service). Cancellation fees: 18% GST.

GST Rates on Travel — Complete Comparison

Travel Mode / Ticket Type	GST Rate	ITC Available?	Notes
Domestic flight — Economy class	5%	Restricted (Sec 17(5))	Applies to base fare + fuel surcharge
Domestic flight — Business class	12%	Restricted (Sec 17(5))	Higher rate reflects premium service
International flight from India	0% (Zero-rated)	Refund claimable by airline	Export of service; both economy & business
Helicopter travel	5%	Restricted	Same rate as economy air
Flight cancellation fee	18%	No (personal use)	Also: date-change fee, upgrade fee
Airport UDF / ADF	Exempt	—	User Development Fee & Airport Development Fee
Train (AC class)	5%	Restricted	Only AC 1/2/3 — sleeper & general exempt
Train (Non-AC / Sleeper)	Exempt	—	No GST on non-AC rail travel
Bus (AC sleeper/chair)	5%	Restricted	Non-AC buses exempt
Taxi / Cab (app-based)	5%	Restricted	Ola, Uber, Rapido etc.; no ITC on commission
Tour package (hotel + flight)	5%	Blocked	Tour operator cannot claim ITC on inputs

ITC on Airfare — When Can Businesses Claim?

Section 17(5) of the CGST Act blocks input tax credit on several categories including "travel benefits extended to employees on vacation such as leave or home travel concession." However, the law does not explicitly block ITC on all business air travel.

In practice:

Business travel for employees — ITC on economy class tickets booked for genuine business purposes (client meetings, official conferences) is generally claimable. Maintain proper tax invoices with your GSTIN mentioned.
Business class tickets — ITC claim is disputed. The intent of Section 17(5) is to block personal use benefits. Conservative approach: do not claim ITC on business class air tickets unless your business specifically involves transporting persons.
Transportation business — If your primary business involves transporting passengers (airlines, tour operators providing transport, corporate shuttle operators), full ITC on airfare and related inputs is available.
Employer to employee reimbursement — If an employee buys a ticket using personal money and claims reimbursement, the company can still claim ITC if the original GST invoice shows the company's GSTIN as recipient. Request re-issued invoices from airlines where possible.

How GST Appears on Your Air Ticket

Airlines are required to issue a GST-compliant tax invoice for each booking. On a typical domestic ticket you will see:

Charge Component	GST Applicable?	Rate
Base Fare	Yes	5% (economy) / 12% (business)
Fuel Surcharge (YQ)	Yes — included in base for GST	5% / 12%
Airline Management Fee	Yes	18%
User Development Fee (UDF)	No	Exempt
Passenger Service Fee (PSF)	No	Exempt
Travel Agent Service Charge	Yes	18% on agent's fee

Frequently Asked Questions

What is the GST rate on domestic flight tickets in India?

GST on domestic flights in India is 5% for economy class tickets and 12% for business class tickets. The GST applies to the base fare and all ancillary charges included in the ticket price (fuel surcharge, carrier charges, etc.). Airport Development Fee (ADF) and User Development Fee (UDF) are exempt from GST. So if your economy ticket has a base fare of ₹3,000 and a ₹500 UDF, GST of 5% applies only to ₹3,000 = ₹150 GST. The 5% rate was reduced from earlier levels to support the aviation sector and keep air travel affordable.

Is GST applicable on international flights from India?

No. International flights departing from India are zero-rated under GST, meaning 0% GST applies. This is because international air passenger transport is treated as an export of service. Under the GST framework, exports are zero-rated — the service provider charges 0% GST and can claim refund of input tax credit. So if you book a flight from Delhi to Dubai or Mumbai to London, no GST is charged on your ticket regardless of whether you book economy or business class. However, if a foreign airline operates in India (inbound flight to India), 5%/12% GST may apply depending on the class of service booked by Indian passengers.

Can companies claim ITC (input tax credit) on employee airfare?

This is a nuanced area. Section 17(5) of the CGST Act blocks ITC on travel benefits extended to employees for personal use. However, if air travel is for legitimate business purposes (client visits, official meetings), ITC on economy class tickets can technically be claimed. In practice, businesses often claim ITC on economy air tickets used for business travel. ITC on business class tickets is a grey area — the tax department may dispute it. Airlines themselves have ITC blocked under Section 17(5)(b) for personal use. If your company's core business involves transportation of persons (like a corporate travel company), ITC is fully available. For most businesses, consult your CA before claiming ITC on airfare to avoid notices.

What is the GST rate on flight ticket cancellation charges?

Cancellation charges levied by airlines attract 18% GST. This is because cancellation fees are classified as a service (providing flexibility/convenience) rather than the original transportation service. So while your economy ticket attracts 5% GST, if you cancel it and the airline charges ₹3,000 as cancellation fee, 18% GST = ₹540 is charged on that fee. This applies to both domestic and international flight cancellations. Similarly, date change fees, upgrade fees, and excess baggage charges all attract 18% GST as ancillary/incidental services. The original ticket GST refund depends on the airline's refund policy.

GST on hotel stay and tour package — what rate applies?

Hotel accommodation GST rates depend on the room tariff: rooms with tariff below ₹7,500/night attract 12% GST; rooms at ₹7,500 or above attract 18% GST. Budget hotels below ₹1,000/night (actual tariff, not published rate) are exempt from GST as of 2022. For tour packages combining flights + hotel + transport, tour operators charge 5% GST on the entire package value without claiming any input tax credit. If a travel agent books hotel only as an intermediary (not as tour operator), 18% GST applies on the agent's commission/service fee. The hotel still charges GST separately on the accommodation price directly to the guest.

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