GST Rates on Modes of Travelling

GST Rates applicable on Modes of Traveling

GST is charged on traveling depending upon the mode of transport that has been used by the person

Traveling is perpetually on our mind and given the current situation caused due to the pandemic coronavirus, our movements have been restricted. However, if given an opportunity to travel safely, we will be happily grab it. In India, travel is majorly done by four modes of travel – railways, airways, seaway and roadways. GST is applicable on all these four modes of travel. The detailed bifurcation is as follows:

i) GST on travel through Railways:

Particulars

GST Rate

AC and First-Class train tickets

18%

Sleeper and general class tickets

0%

Metro train tickets

0%

ii) GST on travel through Airways:

Particulars

GST Rate

Economy class air tickets

5%

Tickets of chartered flights for the purpose of a pilgrimage visit

5%

Business class air tickets

12%

Rental services of aircraft and chartered flights with or without operator

18%

NOTE: 
– If you’re traveling for business purposes, then you can claim Input Tax Credit on goods and services tax of air tickets
– Airlines, in case of economy class air tickets, can claim Input Tax Credit on services.
– Airlines, in case of business class air tickets, can claim Input Tax Credit on food items, spare parts and other inputs apart from fuel.

iii) GST on travel through Roadways:

Particulars

GST Rate

Passengers travelling through public transport

0%

Transport by road of passengers through metered taxi/auto rikshaw or e-rikshaw

0%

Transport by Non-AC contract carriage or stagecoach

0%

Transport by air-conditioned contract carriage or stagecoach

5%

Transport by radio taxi and similar transportation services

5%

Rental services of road transportation including cars, buses, coaches

18%

iv) GST on travel through Seaways:

Mode of Travel

GST Rates

Inland Waterways

Exempted

Vessel used for Public Transport

Exempted

Vessel used for Tourism

5%

Apart from this four mode of travel, there is another mode of travel – Travel by Ropeway/Cable, which is though not a popular mode of transport in India but the following GST rate is applicable:

Mode of Travel

GST Rate

Travel by Ropeway/Cable

5%

Please note that the above goods and services tax rates are only indicative and are subject to change as and when Government amends these rates.

If you have any suggestions/feedback, then please leave the comment below. For more updates on Taxation, Financial and Legal matters, join our group on WhatsApp or follow us on FacebookInstagram and Linkedin

Leave a Comment

Your email address will not be published.