IATA says higher GST on non-economy class flight tickets 'disappointing', counterproductive
GST
Dated:- 4-9-2025
PTI
New Delhi, Sep 4 (PTI) Global airlines' grouping IATA on Thursday termed as “disappointing” the decision to increase the GST on non-economy class flight tickets, “with no justification” and said that taxing premium travellers, where they often make a difference to a route's viability, is counterproductive.
The Goods and Services Tax (GST) Council, comprising representatives from the Centre and the states, on Wednesday decided on a two-rate structure 5 per cent and 18 per cent as part of a major revamp.
Under the rate rejig, to be effective from September 22, non-economy class air travel will attract a GST of
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rcraft orders and world-class infrastructure.
“Aviation has tremendous potential to contribute to India's economic growth, both directly as Indian airlines grow, and indirectly through increased connectivity for travellers and businesses alike. It is therefore disappointing to hear of a decision to increase the GST on non-economy travel with no clear justification,” he said.
For its aviation industry to thrive, he said India needs to take a whole-of-government approach in considering broader policy and consider the risks of such policies on dampening demand and undermining profitability.
“Asia Pacific airlines are forecast to only earn USD 2.60 per passenger in 2025. Taxing premium travellers, where these customers often make a differ
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