<h1>GST Council raises GST on non-economy airfares to 18% from 12% effective Sept 22; economy stays 5%</h1> The GST Council has restructured air travel taxation into two rates, raising the GST on non-economy class tickets to 18% from 12%, effective September 22, while economy fares remain at 5%. An international airline association criticized the increase as unjustified and potentially counterproductive, arguing higher taxes on premium travel may dampen demand, undermine route viability and airline profitability, and negate investments in premium products. Rating analysts expect airlines to pass the higher tax to consumers with limited impact on business-class demand but possible downtrading. The change poses regulatory and commercial risks for carriers and could influence pricing, connectivity and industry growth.