Impact of Increased GST on Premium Air Travel Tickets

The GST for premium, business, and first-class flight tickets will rise to 18% from 12% starting September 22, according to a GST Council decision. While the GST on economy class remains at 5%, this move may shift demand towards economy class as consumers look for value-driven travel options.

From September 22, travelers purchasing premium, business, and first-class flight tickets will face higher costs due to an increase in the Goods and Services Tax (GST) from 12% to 18%.

The GST Council has approved a two-rate structure of 5% and 18%, which is expected to reduce prices for many products and services, while airlines are gearing up to expand premium offerings amid growing demand for quality travel experiences.

Industry experts suggest that this tax hike could push more travelers towards economy class, but operators are encouraged to enhance value-driven premium experiences to maintain appeal.

(With inputs from agencies.)