GST Information for Flight Bookings

What is GST on Flight Tickets?

The Goods and Services Tax (GST) is applicable on all flight bookings in India since July 1, 2017. Whether you're booking for business travel or leisure, airlines are required to charge GST on each flight ticket, based on the class of service and the travel route.

All domestic flight tickets are subject to GST, and if you're a GST-registered business, you may be eligible to claim input tax credit (ITC) on these travel expenses.

GST Rates on Air Tickets

The table below outlines the applicable GST rates on various types of air travel:

Type of Air Travel GST Rate Eligible for ITC
Economy Class (Domestic) 5% Yes (for business use)
Business Class (Domestic) 12% Yes (for business use)
Chartered Flights 12% Yes (for business use)
International Flights (Base Fare) 0% (Zero-rated) Not on fare, only on ancillaries
Northeast & Bagdogra Routes (Economy) 0% No

Note: Additional airport taxes (landing charges, development fees) may apply depending on the airport or route.

Claiming Input Tax Credit (ITC) on Flight Tickets

If your flight ticket is booked for business travel, and your business is GST registered, you can claim input tax credit on the GST paid. This helps reduce your overall tax liability.

To claim ITC, follow these steps:

● Enter your GSTIN, business name, and address at the time of flight booking.

● Ensure you receive a GST-compliant invoice.

● Reconcile this invoice in your GSTR-2B or GSTR-3B.

● Claim the GST input credit in your monthly return.

● Keep the invoice and travel proof in case of audit.

CGST, SGST, and IGST Applicability

Depending on the origin of the flight and your business location:

● CGST + SGST apply when your business and airline are in the same state.

● IGST applies when your business and the airline are in different states.

Always check the breakdown in your GST invoice for flight ticket.

GST on Cancelled Flight Tickets

Here’s how GST input credit works on cancelled or modified tickets:

Refund Type GST Treatment ITC Eligibility
Fully Refunded Ticket GST also refunded Not eligible
Partially Refunded GST on refunded portion returned ITC eligible on retained portion
Non-Refundable Ticket No refund ITC eligible if booked for business

Always obtain the final or corrected GST invoice to support your claims.

Common Mistakes to Avoid

Mistake Impact on GST or ITC
Failing to enter GSTIN while booking Cannot generate compliant invoice
Using personal flights for ITC claim Leads to disallowance or penalty
Not reconciling invoices in GSTR Delays or loss of input credit
Invalid invoice without GSTIN ITC claim becomes invalid

Avoiding these errors ensures smooth GST compliance and maximized tax savings on business travel.

Components of a GST-Compliant Invoice

To qualify for input tax credit, your flight ticket invoice must include:

● Airline’s or portal’s GSTIN

● Your business’s GSTIN, name, and address

● Invoice number and date

● Travel service details (flight number, route)

● Fare breakup and GST rate applied (CGST, SGST, or IGST)

Most airlines like IndiGo, SpiceJet, Vistara, and others issue proper GST invoices if GST details are submitted at the time of booking.

GST on International Flights & Add-on Services

● International tickets are zero-rated for GST.

● However, add-on services like extra baggage, lounge access, meals, and transportation may attract GST.

● These services, if used for official business, are eligible for ITC when properly invoiced.

Example: Claiming GST on a Domestic Flight

Suppose your company (registered in Maharashtra) books a flight ticket from Mumbai to Delhi in economy class:

● GST applied = 5% (2.5% CGST + 2.5% SGST)

● Invoice issued with your GSTIN

● You reconcile the invoice in GSTR-3B

● You claim the input tax credit and reduce your GST liability accordingly

If your business is registered in Karnataka, IGST at 5% would apply instead.

Why Choose FareHawker for GST-Compliant Bookings?

At FareHawker, we specialize in GST-enabled flight bookings for corporate clients:

● GSTIN capture during booking

● Automatic generation of GST-compliant invoices

● Support for bulk, group, and government bookings

● Easy access to invoices for ITC reconciliation

We help you save money and stay compliant with every flight ticket booked.

Frequently Asked Questions

 
Can I claim GST input credit on personal flights?

No. Only business-related flight tickets qualify for input tax credit.

Can I add my GST details after the booking?

No. You must enter GSTIN at the time of booking for it to appear on the GST invoice.

Do international flights allow ITC?

The base fare is zero-rated, but GST on add-on services may qualify for ITC.

What are the current GST rates?

● Economy Class (Domestic): 5%

● Business Class: 12%

● International Flights: 0% on base fare



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