The Goods and Services Tax (GST) framework, which came into effect from July 1, provides for certain input tax credit only on business class tickets and there is no such provision on economy class fares.
Air India, Jet Airways and Vistara - the three domestic carriers that offer business class seats have already sent out communications to inform passengers that GSTIN details need to be submitted in order to avail the benefits.
"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 in a communication.
The GST rate on first class and higher class tickets is 12 per cent while the rate is 5 per cent on economy class tickets. The GST would also replace service tax, krishi kalyan cess and swachh bharat cess.
"It is not compulsory to provide GST details. GST registration details for your business or company may be optionally provided if a customer wishes to claim input tax credit on the GST paid if travelling for business reasons," Vistara said in a communication.