How GST on Airline Tickets Affects Your Travel Budget
If you’re an avid traveler or a frequent flyer, you must have noticed that expensive airline tickets not only affect your financial status but also impacts your travel budget. Especially in recent years, airline tickets have become pricier, and the implementation of GST on airline tickets has added to the cost of travelling. This article delves into how GST on airline tickets affects your travel budget, and what you can do to minimize the impact.
Understanding GST on Airline Tickets
The Goods and Services Tax (GST) is an indirect tax levied by the Indian Government on goods and services sold within the country. It is applicable to all businesses and sectors in India, including the aviation industry. The GST on airline tickets is levied in the form of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) or Integrated Goods and Services Tax (IGST). The percentage of GST varies on different airline tickets, depending on various factors like travel class, destination, and the distance travelled.
How GST Affects Airline Ticket Prices
Since the implementation of GST on airline tickets in July 2017, the cost of airline tickets has increased. Initially, airline tickets were subject to a service tax of 6%, which has now been replaced by a GST ranging from 5% to 28%. This has led to a considerable increase in the base fare, especially for economy class and domestic flights. Service taxes on business and first-class tickets have always been higher, and the addition of GST has caused these already expensive tickets to become even more expensive.
Impact of GST on Travelers
The implementation of GST on airline tickets has a direct impact on travelers. The increase in ticket prices has resulted in a reduction in the number of people opting for air travel. Those who still choose to fly have to pay more and have to adjust their travel budget accordingly. Additionally, frequent flyers and business travelers are severely impacted, as they have to shell out more money on airline tickets.
How to Minimize the Impact of GST on Your Travel Budget
Though you can’t avoid these additional costs, there are ways to minimize the impact of GST on your travel budget. One way is to book your airline tickets during the off-season when airlines offer discounts and reduced fares. Another option is to book your tickets as early as possible, as the prices tend to increase closer to the travel date. Additionally, you can avail of cashback offers on credit cards or online booking platforms that offer discounts on airline tickets.
Conclusion
The implementation of GST on airline tickets has led to a significant increase in the base fare of airline tickets, resulting in a direct impact on travelers, especially frequent flyers and business travelers. However, by being aware of the different pricing structures and booking strategies, we can minimize the impact of GST on our travel budgets. Booking airline tickets during off-seasons, booking early, and availing of cashback offers are some ways to reduce the overall ticket price. By implementing these measures, we can ensure that we enjoy travelling without having to break the bank.
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