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Air tickets: Companies need to provide info to airlines for GST benefits

Sunday, Jul 2, 2017,19:30 IST By anju A A A

New Delhi | Business houses buying tickets for individuals need to provide details about their GST registration to the airlines in order to avail benefits under the new tax regime.

The Goods and Services Tax (GST) framework, which came into effect from July 1, provides for certain input tax credit on air tickets.

Air India, Jet Airways and Vistara, among other airlines have sent out communications to inform passengers that GSTIN details need to be submitted in order to avail the benefits.

The GST Identification Number is issued to entities that are registered under the new tax regime.

“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 the 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.

After submission of the details, the airlines would generate GST invoice for the particular travel and that invoice can be used to claim the benefits.

A Jet Airways official said that any business house buying tickets will be entitled to GST credit if they furnish their GST registration number irrespective of whether it is a business class or an economy class.

Those who buy tickets on an individual basis not having any GST registration number will not get the credits, the official added.

“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.

According to Air India, all passengers requiring GST invoice for their tickets have to complete the one-time registration process on its website by entering the relevant details.

In its communication, Jet Airways also made it clear that “any bookings for leisure travel will not be entitled for GST benefits”.

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