GST on Flight booking services.

[Abishek M]

Services given of booking air tickets in economy class for flight between Mumbai to Manipur.

Is it taxable or exempted ?

Booking charges and transportation charges. 

Please reply. 

[Ryan Vaz]

GST Treatment on Air Ticket Services (Domestic)

1) GST on the Air Transportation (Flight Ticket Fare)

• Air passenger transport service is taxable under GST.
• For domestic flights in economy class, the GST rate is 5% on the airfare charged by the airline.
• This GST is normally included in the fare you see on the airline ticket and is collected and deposited by the airline.

Note: From 22 Sep 2025 under GST 2.0, economy class continues to attract 5% GST (while business/premium classes are taxed higher).

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2) GST on Booking Charges / Service Fees Charged by Travel Agent

• If a travel agent / booking platform charges a separate service fee / convenience fee (distinct from the airline fare), that service fee is a separate supply provided by the agent.
• The agent’s service fee is taxable at 18% GST.
• This is because the travel agent’s service (facilitating the booking) is considered an independent taxable service under GST.

Illustration:

?4,000 airfare booked by a travel portal (airline portion)

? GST @5% charged and collected by airline.

?300 service/booking fee by portal

? GST @18% charged by portal on ?300.

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Summary (Direct Answer)

Component	GST Applicability	Rate
Airline passenger transport (economy class)	Yes (taxable supply)	5% GST
Booking / Convenience / Service charges by travel agent	Yes (taxable service)	18% GST

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? Practical Points

1. Airline fare GST (@5%) is usually included in the ticket price and shown by the airline on the invoice.
2. Carrier GST vs Agent GST: If you book directly with the airline, you pay only 5% GST on the fare. If you book via an agent/portal, you will also pay GST at 18% on the service fee charged by them.
3. Place of supply: For domestic passengers (India), GST is applicable irrespective of origin or destination within India because the transport service is provided in India.

[Shilpi Jain]

Ensure that you provide your GST number to the booking agent in case you wish to take credit of the GST charged 

AI Summary

Flight booking services: economy airfares attract 5% GST, and agent booking fees attract 18% GST. Domestic air passenger transport in economy class is a taxable supply attracting 5% GST, normally included in the airline fare and collected by the carrier. A travel agent's separately billed booking or convenience fee is an independent taxable service attracting 18% GST. If passengers wish to claim input tax credit on the agent's GST, they should provide their GST number to the booking agent.