GST on Air Travel in India: Economy 5%, Premium 18% Effective September 22, 2025

Effective September 22, 2025, India applies 5% GST to economy class and 18% GST to premium cabins, including premium economy, business and first, with time of supply rules preserving 12% on premium tickets booked and paid by September 21, 2025. Airlines and portals have issued operational updates aligning systems to the new slabs for tickets issued on or after the effective date.

GST on Air Tickets: Uniform Slabs Across Routes

The 5% economy and 18% premium rates apply to both domestic and international tickets issued in India from the effective date, replacing the earlier 12% premium slab.

Official and carrier advisories confirm the economy remains at 5% while premium moves to 18% under GST 2.0 simplification.

Booking Date Governs GST

Time of supply rules mean the GST rate is locked by the booking and payment date, not the travel date, for passenger services.

Premium tickets booked and paid on or before September 21, 2025, are levied at 12%, while bookings from September 22, 2025, onward are levied at 18% on premium cabins.

Read More: Don’t Pay More Before Sept 22, 2025! Here's 14 FAQs For Buyers For Understanding GST 2.0!

Invoices and ITC

Tickets are typically GST inclusive; invoices display 5% or 18% based on class with airline GSTIN, and are issued at booking or post-travel.

Businesses can generally claim Input Tax Credit on eligible business travel supported by GST-compliant invoices and correct GSTIN tagging.

Operational Updates

Airlines have updated systems to auto apply 5% for economy and 18% for premium on tickets issued on or after September 22, 2025, across Indian airports.

Ancillary services taken on or after the effective date typically follow the same rate as the passenger service for the booked class.

Conclusion

The revised structure sets the economy at 5% and premium cabins at 18% from September 22, 2025, with legacy 12% preserved for premium tickets paid before the cutover under time of supply rules. This harmonises treatment across domestic and international itineraries ticketed in India.

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