GST on Flight Tickets in India
Flight tickets attract 5% GST for economy class and 18% GST for premium economy, business and first class in India, under SAC 996425. The same rates apply to international flights departing India.
Working out the GST on flight tickets
The rate turns on the cabin you fly, and the calculator below uses 5% — the economy rate. Premium economy, business and first class are 18%. Multiply the taxable value by 5 percent to get the GST, then add it to the base price for the total.
- For an intra-state sale, the 5% splits into 2.5% CGST and 2.5% SGST.
- For an inter-state sale, a single 5% IGST applies instead.
- The calculator on this page is pre-set to the 5% rate and handles both cases.
A worked example
Suppose a flight ticket has a taxable value of ₹5,000 before tax. Applying 5% GST works out as follows.
Flight ticket GST by cabin class
Air travel is taxed on the class you fly, not the distance or the airline. Economy kept its concessional 5% through GST 2.0, while premium cabins moved from 12% to 18% when the 12% slab was abolished on 22 September 2025. The table covers the structure.
| Cabin class | Domestic | International (departing India) |
|---|---|---|
| Economy | 5% | 5% |
| Premium economy | 18% | 18% |
| Business | 18% | 18% |
| First class | 18% | 18% |
| UDAN / North-East economy routes | Exempt | , |
International flights and the SOTO rule
GST applies when the continuous journey begins in India, so a Delhi to London ticket carries the same cabin-class rates as a domestic flight. A ticket sold and issued entirely outside India, known as SOTO, carries no Indian GST at all. This is the most misunderstood part of flight ticket tax, and it means where you buy the ticket can matter as much as where you fly.
The GSTIN timing trap for business travel
Businesses can claim input tax credit on both 5% economy and 18% premium tickets when travel is genuinely for business. But the GSTIN must be entered at the time of booking, before the PNR is generated. Most airlines including IndiGo and Air India will not add it afterwards, and a wrong-name invoice cannot be corrected after issuance. The only remedy is cancelling and rebooking, which usually costs more than the credit is worth. On ₹15 lakh of monthly corporate travel that timing discipline is worth ₹75,000 or more a month in recoverable credit.
Taxed and untaxed parts of your ticket
GST applies to the base fare and the fuel surcharge. Statutory airport charges such as the Passenger Service Fee and User Development Fee are generally exempt. Ancillary services like seat selection, excess baggage and in-flight meals are bundled with the ticket and taxed at the same cabin rate. Cancellation fees carry the rate of the original ticket, so cancelling an economy ticket attracts 5% on the fee and business class 18%. When a ticket is refunded, the GST is refunded proportionally.
Upgrades, tour packages and cargo
If you upgrade from economy to business after booking, the upgrade charge attracts the premium rate of 18%, not the 5% you paid on the original ticket. A flight booked as part of a tour package is taxed under the tour operator scheme rather than as a standalone ticket, which carries its own rate and ITC rules, so the fare component is not separately taxed at 5%. Air cargo is different again: domestic air freight attracts 18%, while outbound international freight depends on the place of supply and inbound is generally exempt.
Chartered and private flights
Chartered flights are taxed on the same class-based logic, and a charter used for religious purposes attracts a concessional 5%. Private jet charters otherwise follow the premium rate.
The reason economy stayed at 5%
The 5% economy rate is a concessional rate, which means the airline itself cannot claim full input tax credit on its inputs when charging it. That is the trade-off the government made to keep mass air travel affordable through the GST 2.0 rationalisation, even as it pushed premium cabins from 12% to 18%. Note the asymmetry: the airline's ITC is restricted at 5%, but a business buying an economy ticket can still claim the 5% GST it pays as credit.
Frequently asked questions
Economy class tickets attract 5% GST and premium economy, business and first class attract 18%, under SAC 996425. The 18% rate replaced the earlier 12% on 22 September 2025.
Yes, if the journey begins in India. A flight departing India carries the same cabin-class rates as a domestic flight: 5% economy, 18% premium. A ticket sold and issued entirely outside India carries no Indian GST.
Yes, on both economy and business tickets for genuine business travel. The GSTIN must be entered at the time of booking, before the PNR is generated, since most airlines will not add it afterwards.
GST applies to the base fare and fuel surcharge. Statutory airport charges such as the Passenger Service Fee and User Development Fee are generally exempt from GST.
Yes, at the same rate as the original ticket. Cancelling an economy ticket attracts 5% on the cancellation fee and a business class ticket 18%. Refunded tickets have the GST refunded proportionally.