Flight ticket HSN Code

Taking Flight with GST: Understanding the “Flight Ticket” HSN Code

When it comes to booking a flight, most of us focus on destinations, dates, and fares. But for businesses and individuals navigating the Goods and Services Tax (GST) regime in India, understanding the tax implications of a flight ticket is essential. The term “HSN Code” usually refers to physical goods. For services like air travel, we look at SAC (Services Accounting Code).

The provided data contains a mix of HSN codes for “Ticket-Issuing Machines” (under Chapter 84) and an SAC for “Reservation Services for Event Tickets, Cinema Halls, Entertainment and Recreational Services and Other Reservation Services” (998554). This highlights an important distinction:

1. Ticket-Issuing Machines (HSN 8470): These are the physical machines that print tickets. They are tangible goods and thus have HSN codes like 84702100, 84704020, etc., all attracting an 18% GST rate. This is for the machine itself, not the service of air travel.
2. Reservation Services (SAC 998554): This SAC broadly covers various reservation services, including for events. While the data mentions this, it’s crucial to understand that this SAC is not directly for the air transport service itself. It pertains to the service of making a reservation for various leisure activities, not the core transportation.

The Actual SAC for Flight Tickets: Air Transport Services

For the service of air transportation, which is what a flight ticket fundamentally represents, the relevant SAC comes under Chapter 9964: Passenger Transport Services. Within this broad category, specific SAC codes and GST rates apply based on the class of travel and whether it’s domestic or international:

• Domestic Scheduled Air Transport Services of Passengers:
  • Economy Class: Typically attracts a 5% GST rate.
  • Other than Economy Class (Business/Premium Economy/First Class): Typically attracts a 12% GST rate.
• International Scheduled Air Transport Services of Passengers:
  • Economy Class: Generally 5% GST on the Indian leg of the journey.
  • Other than Economy Class: Generally 12% GST on the Indian leg of the journey.

These rates are applied to the base fare of the ticket. Certain routes, especially those connecting to specific North-Eastern states or Regional Connectivity Scheme (RCS) airports, may have exemptions or different rates.

The effective date for these GST rates on air travel services was July 1, 2017, although certain clarifications or revisions might have occurred over time.

For businesses, claiming Input Tax Credit (ITC) on flight tickets is possible if the travel is for business purposes. The airline typically provides a GST invoice with the relevant SAC code and GST breakdown.

So, while you might not see an “HSN code” specifically for a flight ticket, the underlying air transport service is meticulously classified under various SAC codes, ensuring clarity in GST application for your journey!