https://www.taxtmi.com/news?id=54627 Decision raises the GST rate on non-economy class air travel under a two rate structure while leaving economy class at the lower rate. The change increases the indirect tax burden on premium tickets, shifting tax incidence within the aviation sector. Industry bodies criticised the move as counterproductive and without clear justification, warning it could dampen demand for premium travel and affect route viability. Analysts expect airlines to pass the higher tax to consumers, with limited elasticity in the premium segment but potential downtrading to economy. en-us Thu, 04 Sep 2025 17:46:03 +0530 Thu, 04 Sep 2025 17:46:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=54627 Decision raises the GST rate on non-economy class air travel under a two rate structure while leaving economy class at the lower rate. The change increases the indirect tax burden on premium tickets, shifting tax incidence within the aviation sector. Industry bodies criticised the move as counterproductive and without clear justification, warning it could dampen demand for premium travel and affect route viability. Analysts expect airlines to pass the higher tax to consumers, with limited elasticity in the premium segment but potential downtrading to economy. News - Thu, 04 Sep 2025 17:46:03 +0530 https://www.taxtmi.com/news?id=54627