GST on Travel By Air

Economy Class[ Sl No. 8(iii) of 11/2017-CTR]

Ø Transport of passengers,

Ø with or without accompanied belongings,

Ø by air

Ø in economy class

Is taxable @ 5%

 

Subject to Condition that credit of input tax charged on goods used  in supplying the service has not been taken

Embarking or Terminating in RCS Airport [ Sl No. 8(iv) of 11/2017-CTR]

Ø Transport of passengers,

Ø with or without accompanied belongings,

Ø by air,

Ø embarking from or terminating in a Regional Connectivity Scheme Airport,

Ø as notified by the Ministry of Civil Aviation.

Ø Is taxable @ 5%

 

Ø Subject to Condition that credit of input tax charged on goods used  in supplying the service has not been taken

 

Executive Class [ Sl No. 8(v) of 11/2017-CTR]

 

Ø Transport of passengers by air,

Ø  with or without accompanied belongings,

Ø in other than economy class

is taxable @ 12%

Note : There is no condition for not availing the ITC

 

Explanation 4(iv) to NN 11/2017

Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,-

(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

(b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.

Exemption on Travel by Air

  1. As per Sl No. 15(i) of 12/2017-CTR, Transport of passengers, with or without accompanied belongings, by – (a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal is NIL rated.
  2. As per Sl No. 16 of 12/2017-CTR, Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding is Nil rated.

Provided that nothing contained in this entry shall apply on or after the expiry of a period of one year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation.

 

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