GST on International Flight Tickets


GST on International Flight Tickets

The Goods and Services Tax, or GST for short, is an important tax that is levied on both goods and services starting from July 1st, 2017. It replaced this country’s existing tax system, which had been in use for many years. The tax system was reformed to introduce a single tax levied by the government.

After implementation of GST, all the business entities are trying to minimize their cost by availing the maximum Input Tax Credit of GST wherever possible and to the extent not restricted by any section or rule of GST Act. Further in this process, businesses face various issues due to lack of clarity in flow of ITC or due to complexity of the transaction.

International Flight Tickets GST Rate

Since its introduction in July 2017, air tickets in India are subject to the Goods and Services Tax (GST). At the point of sale, airline tickets are subject to GST. So, GST on international flight tickets is applicable if the ticket is booked from Ex-India; that is, the departure country is India. Even if the airline is an international airline, they are bound to collect GST on the air tickets. Furthermore, they are also obliged to share the GST Invoice with the travellers. If the point of sale is not India, then GST will not be applied to that Air ticket; hence, GST invoices for international flights for such cases will not be applicable.

GST on travel varies on the basis of the air ticket class. Here is the breakdown of GST applicable on airfare under GST on tour and travels:

Seat Type GST on International flights
Business or Premium Economy 12%
Economy 5%

GST Input Tax Credit on Flight Tickets

In order to deliver goods and services, all service providers must collect GST. However, when these services are used for work, customers can get input credit. Hence, the organisations where the employees are subject to travel can avail of GST input on flight tickets booked for their employees travelling for official work. The companies can claim GST inputs for their tax to book flight tickets. This will reduce the overall tax that they are supposed to pay.

 What is required to claim ITC in GST? 

Customers or companies that want to claim the Input Tax Credit on GST on air tickets must provide the following information-

  • Company’s registered name
  • Company’s GST number
  • Company’s registered address
  • Company’s registered contact information

If a customer has provided the GST No. of their business entity while booking the air ticket, then the customer can avail of the Input tax credit on the GST amount of their air ticket. For this, the customer would need the GST Invoice with the travel GST rate, which is provided by the airline to the customer. Usually, Domestic Airlines provide GST invoices either immediately after booking the air ticket or immediately after the travel is completed. But in case of international airlines, GST invoice for international flight bookings is provided 15-45 days following the date of travel.


Krishnakant Jakhotia

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