The implementation of Goods and Services Tax (GST) as an indirect tax in India has affected almost every major and most minor business sectors of the country. Indian Aviation is one such industry which was affected by the launch of GST. Let’s try to understand the impact of GST on aviation sector, both long term and short term.
GST Rate on Domestic and International Flights
The major impact of GST on international and domestic flights was in the form of revised tax rates of airfares. After the launch of GST, the tax rates on both economy and business class airfares were changed. Whereas the tax on Economy class air travels was reduced, the rate on Business class airfares is now higher. Take a look below for GST effect on international and domestic flights.
