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Regular-article-logo Tuesday, 20 May 2025

Exec air travel to enjoy relief

Business houses buying tickets for individuals need to provide details about their GST registration to the airlines in order to avail benefits under the new tax regime.

TT Bureau Published 03.07.17, 12:00 AM

New Delhi, July 2 (PTI): Business houses buying tickets for individuals need to provide details about their GST registration to the airlines in order to avail benefits under the new tax regime.

The goods and services tax (GST) framework, which came into effect from July 1, provides for certain input tax credit on air tickets.

Air India, Jet Airways and Vistara, among the other airlines, have sent out communications to inform passengers that GSTIN details need to be submitted in order to avail the benefits. The GST Identification Number (GSTIN) is issued to entities that are registered under the new tax regime.

"It is now mandatory for guests travelling for business to add their company's GST details at the time of booking. To ensure a seamless experience, we request that you inform your guests travelling for business to register on our portal and claim up to 12 per cent back on flights," Jet Airways said.

The GST rate on the first class and higher class tickets is 12 per cent, while the rate is 5 per cent on economy class tickets. After submission of the details, the airlines would generate GST invoice for the particular travel and that invoice can be used to claim the benefits.

In its communication, Jet Airways also made it clear that "any bookings for leisure travel will not be entitled for GST benefits".

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