GST hike to make premium air travel costlier; IATA expresses disappointment

GST on Premium Economy, Business, and First class air travel rises to 18%, while economy fares remain unchanged. IATA expresses disappointment, warning of negative effects on India's aviation sector

International Air Transport Association (IATA) has expressed disappointment after the GST Council raised the levy on premium economy, business, and first class tickets to 18 per cent from 12 per cent.

 

“In many ways, India has been an amazing aviation story with its impressive growth, record aircraft 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,” Sheldon Hee,