&imwidth=800&imheight=600&format=webp&quality=medium "GST reforms 2025: Will you be asked to pay more for flights booked before September 22?")
The GST Council approved on Wednesday structural reformsin the Goods and Services Tax (GST) regime, eliminating the 12 per cent and 28 per cent slabs. The goods and services in these two slabs have been moved to the 5 per cent and 18 per cent slabs, in an attempt to boost domestic consumption by providing more disposable money to the masses.
The GST Council has also decided to increase the GST on premium air travel, including premium economy and business class flight tickets. These tickets are taxed at 12 per cent. However, after September 22, the ticketswill be taxed at 18 per cent. The government hasn't changed the tax levy on domesticair travel, which attracts a 5 per cent GST.
But what would happen if you have to travel after September 22?
Chartered Accountant Deep Koradia told Economic Times that under the GST law, the time of supply in case of services in any of the two events out of three as listed below, falls before the date of change in rate, then the old rate will be applicable. These three events are: date of invoice, date of payment, and date of service provided.
The Finance Ministry explained the scenario on September 3 through an advisory. It said that the time of supply of any good or service is the date of receipt of payment or the date of the issuance of the invoice – whichever is earlier. If the payment isn't received, the time of supply shall be the date of receipt of payment.
So if a person has booked air tickets before September 22, 2025, and has fully paid the amount, the old GST rate of 12 per cent will apply. Even if the person's date of travelling is after the implementation of the new GST rates, she will not be required to pay the difference in tax amount.
Trending Stories
&im=FitAndFill=(700,400))
How the S-400 uses multiple radar trucks to scan the sky at once
)
Russia-Ukraine war: Kremlin claims more than 370 drones target Moscow region overnight
&im=FitAndFill=(700,400))
How the S-400 tracks multiple targets at once
&im=FitAndFill=(700,400))
From The Odyssey to Troy: 5 movies based on the legendary Trojan War on OTT platforms
&im=FitAndFill=(700,400))
Why Russian aircraft use flexible refuelling hoses compared to US refuelling booms
&im=FitAndFill=(700,400))
Why the F-22 nose cone is built from radar-transparent materials
)
'Works in Gaza': Who is Sonam Wangchuk's Danish funder that also operates in Palestine and other global conflict zones
)
Magnitude 5 earthquake strikes Iran as military escalation with US continues
)
Sonam Wangchuk's connection with George Soros and Ford Foundation explained!
)
72nd National Film Awards: Yami Gautam wins Best Actress; Kartik Aaryan and Mammootty share Best Actor honour
)
'George Soros playbook': Understanding the foreign funding network around Sonam Wangchuk
)
Pakistan joins Miss World for the first time in 74 years: Why the delay and what it means now
&im=FitAndFill=(700,400))
New Friday OTT releases (July 17, 2026): Maa Inti Bangaaram, The East Palace, Desire- 5 new movies and TV shows on Netflix, JioHotstar and more
)
Older than Himalayas: 85mn-year-old Kewra plant reached India 24mn years ago, fossil discovery in Assam shows
&im=FitAndFill=(700,400))
Why Russian fighter jets mount nose camera balls compared to US jets
)
Don't know what The Odyssey is? Here's the ancient Greek myth explained simply
&im=FitAndFill=(700,400))
'Every launch comes at a price': Why firing an S-400 missile is so expensive
&im=FitAndFill=(700,400))
Why F-22 Radar Absorbent Material (RAM) requires constant inspection
)
Americans need to prove they are American citizens to visit a national park in US
&im=FitAndFill=(700,400))
FIFA World Cup 2026 awards race: Who are Golden Boot, Golden Ball and Golden Glove contenders ahead of the final
&im=FitAndFill=(700,400))
Why Russian strike fighters seat pilots side-by-side compared to US jets
&im=FitAndFill=(700,400))
Global air power ranking 2026: India surpasses China
)
UK court denies bail to Indian merchant navy captain held in Russian oil tanker case
)
25km meteor crater in rugged Canadian terrain remained hidden for 390 million years
)
Putin's mysterious Tu-214PU 'Doomsday plane' lands in Iran as US-Iran conflict spirals
)
Maharashtra man kills ex-girlfriend, reveals chilling details in call with woman's fiancé, later found dead
)
Here's how much England will get as prize money from FIFA after beating France 6-4 in WC third-place playoff
&im=FitAndFill=(700,400))
Why the F-22’s tail fins are canted to minimize its radar footprint
)
Russia-Ukraine war: Russian ballistic missiles rock Kyiv overnight
)
Imran Khan's sister links India-Pakistan 2025 conflict to Israel recognition plans
)
'What is wrong...': Anna Hazare breaks silence on Sonam Wangchuk's protest, makes an appeal to Centre
"Passengers who book and pay before the rate change will continue to enjoy the existing rates, ensuring fairness and avoiding last-minute surprises," Liberatha Kallat, CMD, DreamFolks, told ET.
What about cancellations?
In case a person's flight, which was booked and paid for before September 22, is cancelled and the service is not provided, the airline would be required to cough up 12 per cent GST return. Even if the GST rate is 18 per centat the time of the cancellation, the amount refunded would be 12 per cent of the payment.