GST on domestic flight tickets is 5% on economy class and 18% on business/premium class. Under GST 2.0 (effective 22 September 2025), the earlier 12% premium slab was raised to 18%, while economy stayed at 5%. International flights departing India are zero-rated (0%) as an export of service, and cancellation/date-change fees attract 18%.
GST Rate on Air Travel — Decision Table
The GST rate for every common air-travel and ticket-charge scenario in India, with ITC eligibility for business travellers.
| Ticket / Charge Type | GST Rate | ITC | Notes |
|---|---|---|---|
| Domestic flight — economy class | 5% | Yes* | On base fare + fuel surcharge |
| Domestic flight — business / first | 18% | Yes* | 12%→18% since 22 Sep 2025 |
| Premium economy (domestic) | 18% | Yes* | Treated as premium cabin |
| International flight from India | 0% | — | Zero-rated export of service |
| Helicopter / seaplane (scheduled) | 5% | Yes* | Same as economy air |
| Cancellation / date-change fee | 18% | — | Separate service, not transport |
| Excess baggage / seat / upgrade fee | 18% | — | Ancillary service |
| Airport UDF / PSF / ADF | Exempt | — | Statutory airport fees |
| Travel agent service charge | 18% | Yes | On the agent's own fee |
*ITC on airfare is available to a GST-registered business only for genuine business travel — see the ITC section. Rates reflect GST 2.0 effective 22 September 2025; confirm on the official GST portal before claiming.
Economy 5% vs Business 18% — What Changed
One factor decides the domestic rate: the cabin class you fly. Economy remains at the concessional 5%, while every premium cabin — premium economy, business and first — now attracts 18% after GST 2.0 raised the old 12% premium slab.
Economy class — concessional rate
- All economy domestic tickets
- Applies to base fare & fuel surcharge
- Helicopter & scheduled seaplane travel
- ITC for business travel allowed
- Rate unchanged by GST 2.0
Business / premium — standard rate
- Business & first class
- Premium economy cabins
- Raised from 12% on 22 Sep 2025
- Higher fare on premium tickets
- ITC for business travel allowed
Business/premium tickets booked and paid on or before 21 September 2025 were charged the old 12%. Bookings from 22 September 2025 onward carry 18%. Watch this on invoices that straddle the changeover date.
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GST on International Flights
International air passenger transport departing from India is treated as an export of service and is zero-rated (0% GST). The airline charges no GST on the ticket and can claim a refund of its input tax credit. This applies to both economy and business class on outbound international sectors.
- 1PassengerBooks outbound international ticket
- 2AirlineCharges 0% GST (zero-rated)
- 3Airline ITCClaims refund of input tax
- 4Inbound to India5%/18% may apply by cabin
- Outbound international departures from India are zero-rated — no GST on the ticket.
- The inbound leg into India (foreign airline carrying Indian passengers) can attract 5% economy / 18% premium.
- ITC on inputs remains recoverable by the airline on zero-rated supplies.
How GST Adds Up — ₹10,000 Base Fare
5% Economy domestic ticket
18% Business domestic ticket
GST applies to the base fare and fuel surcharge; statutory airport fees (UDF, PSF, ADF) are exempt and carry no GST. Use our GST calculator to check any fare.
ITC on Airfare — When Can You Claim?
A GST-registered business can claim Input Tax Credit on air tickets used for genuine business travel, on both the 5% economy and 18% premium slabs, provided the invoice carries the company GSTIN and appears in GSTR-2B. Section 17(5) blocks credit only for travel benefits given to employees for personal use (leave/holiday travel).
✓ITC generally available if
- Travel is for business (client visits, meetings, projects)
- Ticket invoice shows your firm's GSTIN as recipient
- The supply reflects in your GSTR-2B
- You fly economy or premium for legitimate work
!ITC blocked / disputed if
- Ticket is a leave / holiday travel concession (personal)
- Invoice is in the employee's name, not the GSTIN
- Travel is for personal or non-business purposes
- Documentation is incomplete or reimbursed without a valid invoice
Always have airlines and agents issue GST invoices in your company's name with the correct GSTIN at the time of booking — retroactive re-issue is painful. Reconcile these against your GSTR-2B monthly so eligible airfare ITC is never lost.
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Get GST Return Help →How GST Appears on Your Air Ticket
Airlines must issue a GST-compliant tax invoice for every booking. Here is how each charge on a typical domestic ticket is treated:
| Charge Component | GST? | Rate |
|---|---|---|
| Base fare | Yes | 5% eco / 18% premium |
| Fuel surcharge (YQ) | Yes | Same as base fare |
| Cancellation / date-change fee | Yes | 18% |
| Excess baggage / seat / meal | Yes | 18% |
| User Development Fee (UDF) | No | Exempt |
| Passenger Service Fee (PSF) | No | Exempt |
| Travel agent service charge | Yes | 18% |
The GST rate on the base fare follows the cabin class; ancillary services and fees follow their own rate as shown.
- Correct GSTIN on the ticket invoice
- Cabin class matches the GST rate charged
- UDF / PSF shown GST-free
- Ancillary fees taxed at 18%
- Invoice reflects in GSTR-2B
- ITC claimed only on business travel
- International departure shown zero-rated
- Agent fee GST separated from fare
- Rates & notifications: gst.gov.in
- CBIC rate finder: cbic-gst.gov.in
- GST 2.0 two-slab reform effective 22 September 2025 (economy 5%, premium 18%)
- Zero-rating of exports: Section 16, IGST Act 2017
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.