GST on Air Tickets and Flight Bookings in 2026: Rates, ITC and Invoices

Every flight ticket bought in India has a GST line, and since 22 September 2025 that line depends on the cabin you book. This guide is for travellers checking a fare breakdown and for business owners who want the GST on staff travel back as input tax credit (ITC). It covers the 2026 rates for economy and premium cabins, how domestic and international journeys are treated, worked ₹ fares, the ITC rules many pages get wrong, travel agent and OTA convenience fees, and how to get a proper GST invoice. Rates were checked against the notified rate schedule and the Finance Ministry's FAQs in October 2026.

Quick answer

Economy class flights carry 5% GST. Premium economy, business and first class carry 18% — up from 12% on 22 September 2025. A registered business can claim the GST on business travel as input tax credit in either cabin, provided the ticket is booked with its GSTIN.

• Economy: 5% — unchanged by GST 2.0

• Premium economy, business, first: 18% (was 12%)

• OTA or agent convenience fee: 18% on the fee

• ITC allowed on business travel; blocked only on leave or home travel concession

• Enter your GSTIN at booking — most airlines can't add it later

GST on air tickets in 2026: the rates

Passenger air transport is a service under SAC heading 9964. The rate depends on the class of travel, and GST 2.0 changed only one side of that split. Notification 15/2025–Central Tax (Rate) raised the central tax on air travel "in other than economy class" from 6% to 9%, so the combined rate went from 12% to 18%, effective 22 September 2025. Economy stayed at 5%.

The two rates come with different credit rules for the airline, not for you. An airline charging 5% on economy fares can take credit only on input services in the same line of business — for example, seats bought from another carrier — and not on fuel, aircraft leases or other inputs. On premium cabins at 18% it gets full credit. The PIB FAQs on GST 2.0 confirm that, unlike road passenger transport, airlines have no option to pay a higher rate on economy fares in exchange for full credit.

Premium economy is not a separate category in the law. The schedule speaks only of "economy class" and everything else, so a premium economy seat is taxed like business class.

What GST is charged on in your fare

A domestic ticket price is built from several pieces: the airline's base fare, carrier-imposed charges set by the airline, airport charges such as the user development fee and aviation security fee, and GST. GST is levied on the airline's consideration for carrying you, so it is worked out on the airline's fare components. Airport charges appear as separate lines because they are collected on behalf of the airport operator or the government. On the ticket, the GST line is commonly shown under the tax code K3.

Because the exact split differs by airline and fare, the reliable way to see what was taxed is the airline's GST invoice, which shows the taxable value, the rate and the tax amount. The fare breakdown on an itinerary or booking screen is not the tax invoice.

Worked fares (illustrative, same airline, Delhi–Mumbai, one way):

The economy fare's tax did not change. The business fare's tax rose by ₹1,680. If the airline kept its fare unchanged, the business ticket became about 5.4% more expensive — the ratio 118 ÷ 112. For a registered business that books with its GSTIN, the extra cost is recoverable through ITC, so the change hits individuals and unregistered firms hardest.

Working backwards. If you know only the airline fare plus GST, divide by 1.05 for economy or 1.18 for premium cabins to get the taxable value. An airline fare of ₹5,460 including 5% GST has ₹260 of tax inside it.

Try it — GST on a business class fare

Sales (Add GST)Purchase (Remove GST)Price Comparison

AmountGST Rate

0%3% (Gold / silver)5%18% (Standard)40% (Sin / luxury)

Transaction Type

Intra-state (CGST + SGST)Inter-state (IGST)

Base Amount (Before GST)₹28,000.00

CGST (9%)₹2,520.00

SGST (9%)₹2,520.00

Total GST (18%)₹5,040.00

Total Amount (Including GST)₹33,040.00

Open the full GST Calculator (PDF, save, compare)

Domestic vs international flights: place of supply

Whether the invoice shows IGST or CGST plus SGST is decided by the place of supply. For passenger transport, section 12(9) of the IGST Act has two rules. If you are a registered business, the place of supply is your registered location — so a Pune company flying an employee from Delhi to Chennai has its place of supply in Maharashtra. If you are not registered, the place of supply is where you board the aircraft for a continuous journey.

The airline compares that place with the state of its own registration on the invoice. If they match, it charges CGST and SGST in equal halves; if not, IGST. The total GST is the same either way, and a registered buyer can claim either form as credit.

International flights. An outbound flight from an Indian airport is taxable in India at 5% in economy and 18% in premium cabins, whether you fly an Indian or a foreign airline. For a traveller who is not registered, the journey's starting point decides the place of supply, so a leg that begins abroad — your return from Dubai to Mumbai, say — is generally outside Indian GST. A return ticket is treated as two separate journeys for this purpose. A registered business buying a ticket for a trip abroad is in a different position, because its own location becomes the place of supply; check the airline's invoice and ask your adviser where a ticket mixes inbound and outbound legs.

Which GST appears on your air ticket

Step 1

Cabin booked

Step 2

Economy → 5%

Premium cabins → 18%

Step 3

Registered buyer? Your GSTIN state is the place of supply

Step 4

Unregistered? Boarding point is the place of supply

Step 5

Same state as airline's GSTIN → CGST + SGST

Else IGST

Can a business claim ITC on flight tickets?

Yes — and this is where many published guides go wrong. Several pages say economy tickets "carry no ITC" because of the 5% rate. That condition limits the airline's own credit on its inputs. It says nothing about the buyer. For the buyer, the test is the ordinary one in sections 16 and 17 of the CGST Act: the ticket must be used in the course of business, you must hold a tax invoice with your GSTIN, the invoice must appear in your GSTR-2B, and the credit must not be blocked by section 17(5).

Section 17(5) does not block business air travel. Clause (b)(iii) blocks only "travel benefits extended to employees on vacation such as leave or home travel concession", and allows even those where a law obliges the employer to provide them. So a sales manager's flight to meet a client, an engineer's trip to a customer site or the owner's flight to a trade fair is creditable in any cabin.

Worked example — a Hyderabad software firm. In one month the firm books six economy tickets with a total airline fare of ₹42,000 (GST ₹2,100) and two business class tickets for directors at ₹56,000 (GST ₹10,080), all with its GSTIN. It also pays an OTA ₹2,400 in convenience fees (GST ₹432). Total GST of ₹12,612 is creditable, provided all invoices show up in GSTR-2B and the trips were for work. If one economy ticket of ₹7,000 was for an employee's holiday under the firm's leave travel scheme, its ₹350 of GST is blocked and must be left out.

Before you claim ITC on an air ticket

0/6

• Ticket booked with the business's legal name, GSTIN and email in the GST fields
• Airline's GST invoice downloaded — not just the e-ticket itinerary
• Invoice appears in GSTR-2B for the month
• Trip was for business, not an employee's holiday or home-travel benefit
• OTA or agent fee invoice also carries your GSTIN
• Cancelled tickets: credit reversed to the extent of the airline's credit note

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The usual timing rules apply. You must claim the credit by 30 November after the end of the financial year, and if you buy through an agent on credit, pay within 180 days of the invoice date to keep it.

Travel agent and OTA convenience fees

When you book through an online travel agent or a travel agency, two suppliers charge GST on two different things. The airline charges 5% or 18% on the fare and issues its own invoice. The agent charges GST on its service — the convenience fee, booking fee or service charge — and issues a separate invoice.

The agent's service carries 18%. A ₹350 convenience fee on a domestic booking carries ₹63 of GST, so the fee line becomes ₹413. Some agents roll fees into a single "convenience fee including taxes"; divide by 1.18 to find the tax inside.

Rule 32(3) of the CGST Rules gives air travel agents an alternative. At their option, an agent can treat 5% of basic fare of the basic fare as the value of its service on domestic bookings, and 10% of basic fare on international bookings. "Basic fare" means the part of the fare on which airlines normally pay agents commission. On a domestic basic fare of ₹10,000, the deemed value is ₹500 and the agent's GST is ₹90; on an international basic fare of ₹60,000, the deemed value is ₹6,000 and GST is ₹1,080. This option mainly suits traditional agents who earn commission rather than separate fees.

For a corporate travel desk, the practical rule is to collect both invoices — the airline's and the agent's — with your GSTIN on each. The agent's GST is creditable for business travel on the same terms as the fare.

Getting a GST invoice with your GSTIN

Rule 54(4) of the CGST Rules says that for passenger transport, a ticket in any form counts as the tax invoice, even without a serial number or the passenger's address, as long as it carries the details required by rule 46. In practice, Indian airlines issue a separate GST invoice for each booking where a GSTIN is entered, and email it or let you download it from their GST invoice page using the PNR and email.

Three steps make sure you get it:

1. Enter GST details at booking. On the airline's website, app or the agent's booking page, tick the option to use GST details and enter the business's GSTIN, registered name and email. Most airlines do not allow a GSTIN to be added after the PNR is created.
2. Download the airline's invoice. Check that it shows your GSTIN, the airline's GSTIN, SAC 9964, the taxable value, the rate and the IGST or CGST/SGST split.
3. Match it in GSTR-2B. Airlines report business invoices in their GSTR-1, so the invoice should appear in your GSTR-2B. If it does not, contact the airline before claiming.

Cancellations and changes. When you cancel a ticket and the airline refunds part of the fare, it issues a credit note reducing the GST it charged; you reverse your credit by the same amount. Cancellation or change fees the airline keeps are its charges for that service and carry GST, which is creditable for business trips on the same terms.

Who bears the GST as a final cost

For an individual traveller the GST on a ticket is simply part of the price; there is no way to recover it. The same is true for a business that is not registered, and for a business registered under the composition scheme, which cannot claim input tax credit at all. A freelance consultant below the ₹20 lakh services threshold who flies business class therefore feels the full effect of the September 2025 increase, while a registered company booking the same seat recovers it.

Businesses that make exempt supplies are in a similar position. A clinic offering only exempt healthcare or a residential landlord cannot use credit against exempt income, so the GST on travel for that side of the business stays a cost. A business with both taxable and exempt income claims the share of credit that relates to taxable supplies under section 17(2) and the CGST Rules.

Air travel GST — key dates

1 Jul 2017

GST starts: economy 5%, other classes 12%

22 Sep 2025

GST 2.0: premium economy, business and first class move to 18%; economy stays 5%

8 Oct 2026

57th GST Council: no rate changes; process reforms await notification

Each April

Any future rate changes expected from 1 April after the annual rate meeting

What changed in 2025–2026, and what's pending

The only rate change was the September 2025 increase on premium cabins. The 57th GST Council, which met on 8 October 2026, changed no rates and said rate matters will be considered once a year. Among its process reforms, it recommended keeping the tax chain intact where a service is bought and resold in the same line of business, with passenger transport given as an example. That matters to travel companies that buy and resell air travel; it does not change what a traveller pays. It takes effect only when notified, and no notification had been issued as of October 2026.

Common mistakes with GST on flights

• Booking without a GSTIN. A ticket booked as an individual gives no credit, and most airlines will not add the GSTIN afterwards.
• Skipping ITC on economy tickets. The 5% rate does not stop a business from claiming the GST on business travel.
• Using the e-ticket as the only record. Download the airline's GST invoice; it carries the tax split that must match GSTR-2B.
• Claiming credit on leave or home travel concession. Section 17(5)(b)(iii) blocks it unless a law makes the benefit compulsory.
• Forgetting the agent's invoice. The convenience fee GST is a separate credit that needs its own invoice.
• Still budgeting business class at 12%. Any ticket issued on or after 22 September 2025 carries 18%.

Official links

• Notification 15/2025–CT(Rate) (Gazette)Entry 8(v): non-economy air travel at 18% from 22 Sep 2025
• 56th GST Council recommendationsServices rate table — air transport of passengers
• PIB FAQs on GST rate rationalisationNo two-rate option for air travel
• Section 17, CGST ActBlocked credits — leave and home travel concession
• Rule 32, CGST RulesAir travel agent valuation option
• Rule 54, CGST RulesTicket as tax invoice for passenger transport

What to do next

Before your next booking, save your business's GSTIN in your airline and OTA profiles so every ticket carries it. Use the GST calculator to check the tax on a fare, and read our input tax credit guide for the monthly matching routine. If your trips include hotel stays, see GST on hotel rooms, and for the wider September 2025 changes, our GST 2.0 guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the GST rate on air tickets in 2026?

Economy class flights carry 5% GST. Premium economy, business and first class carry 18% from 22 September 2025, up from 12%. The rate applies to the airline's fare for flights departing India, domestic or international. Airlines cannot choose a different rate — the PIB FAQs on GST 2.0 say no option is available for air travel.

Can I claim input tax credit on flight tickets?

Yes, if the travel is for your business and the airline's GST invoice carries your GSTIN. Section 17(5) of the CGST Act does not block business air travel — it blocks only travel benefits for employees on vacation, such as leave or home travel concession. That applies to economy tickets at 5% as well as business class at 18%. The economy restriction on credit applies to the airline's own inputs, not to you.

How much GST is charged on a business class ticket now?

18% of the airline's fare. On a Delhi–Mumbai business class fare of ₹28,000 before tax, GST is ₹5,040; before 22 September 2025 it was ₹3,360 at 12%, so the tax went up by ₹1,680. A registered business that books with its GSTIN can claim the full ₹5,040 as input tax credit.

Is GST charged on international flight tickets?

Yes, on journeys that start in India. An outbound ticket from India carries 5% in economy and 18% in premium cabins. For an individual, the place of supply is where the passenger boards, so a sector that starts outside India is generally outside Indian GST. A return ticket is treated as two journeys.

What GST does MakeMyTrip or a travel agent charge on the convenience fee?

An online travel agent's convenience or service fee is the agent's own service and carries 18% GST, separate from the airline's GST on the fare. A ₹350 convenience fee carries ₹63 of GST. Agents may instead value their booking service at 5% of basic fare of the basic fare for domestic and 10% of basic fare for international bookings under Rule 32(3).

How do I get a GST invoice for a flight ticket?

Enter your business name, GSTIN and email in the GST fields when you book — on the airline's site or the agent's. The airline then issues a GST invoice, usually emailed or downloadable from its GST page using the PNR. Many airlines do not let you add a GSTIN after the booking is made, so you lose the credit if you skip it.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Notification No. 15/2025–Central Tax (Rate), 17 September 2025 (Gazette of India) — Ministry of Finance / Gazette of India · accessed 9 October 2026
2. 2.Recommendations of the 56th Meeting of the GST Council — PIB, Ministry of Finance · accessed 9 October 2026
3. 3.FAQs on the decisions of the 56th GST Council — PIB, Ministry of Finance · accessed 9 October 2026
4. 4.Section 17 – CGST Act, 2017 (blocked credits) — CBIC · accessed 9 October 2026
5. 5.Rule 32 – CGST Rules, 2017 (air travel agent valuation) — CBIC · accessed 9 October 2026
6. 6.Rule 54 – CGST Rules, 2017 (tax invoice in special cases) — CBIC · accessed 9 October 2026
7. 7.Place of supply of services — Section 12 IGST Act (commentary) — GST Gyaan · accessed 9 October 2026
8. 8.GST on Flight Tickets in India – Domestic & International Tax Rates Explained 2026 — LegalRaasta · accessed 9 October 2026
9. 9.57th GST Council Meeting: No GST rate change, FMCG & pharma get ITC relief — Office Newz · accessed 9 October 2026