Components of flight ticket on which you are paying GST? Find right here at refundme.in

Components of flight ticket on which you are paying GST? Find right here at refundme.in

A thoughtful flyer is the one who knows what he is paying while taking a flight. Taxes, fees and charges are a few things that we almost ignore or don’t give a thought about. But as a careful flyer, it is needful to know what elements or type of taxes we are funding through our pockets to the airlines.

If we talk about general airline’s domestic flights, their taxes, fees and charges are normally in the form of – passenger service fee, user development fee, development fee, fuel surcharge, carrier imposed miscellaneous fee and more important GST. However, for international flights, apart from these charges, taxes and charges are charged according to different international airlines.


If you are going through misery of understanding how charges, taxes or say discounts are imposed on airfare, then continue reading to know how these components can get you flight cancellation compensation.

How GST entered the Airfare game and led to what effects?

After seeing a desirable growth of airlines from components like VAT and service charges, next, it became important for airlines to look and understand how GST on flight tickets will help in contributing to the continued growth of the airlines.

Under the VAT regime, the airlines were attracting 5.6% tax on economy class and 8.4% tax for business class. After implementation of GST, economy tickets started to attract 5% tax and business class 12%. This clearly shows good news for budgeted economic passengers, since they are rolled in a less airfare regime.

Components of airfare on which the tax like GST is levied

Currently, the GST on airfare is calculated on the combination of base fare, fuel surcharge and the CUTE fee.

Recently, GST on fuel surcharge has become a debatable topic since few airlines after collapsing with loses are arguing on fixing the percentage for taxes on AFT (Airline turbine fuel). There have been proposals stating big commercial jets should cap 18% taxes and aircraft less than 40 tonnes should attract 5%.

How my airlines provide a discount on airfare?

Let’s clear out your doubt today of how airlines calculate your discount on air tickets. The discount amount is generally calculated on the base fare. Yes, you heard it right. Suppose if your air ticket is of INR 8,000 and the base fare included in it is of INR 2,000 and due to the festive season, the airline offers you say 20% off. In that case, your 20% will be calculated on the base fare of INR 2,000, not 8,000. Now you know why knowing base fare is important, right!

How airlines charge fee/taxes in case I cancel my flight?

Each airline has their fixed criteria of charging a cancellation fee/taxes from buyer’s pocket. If we talk about IndiGo airlines, there are flight cancellation charges of INR 3,000 (if flights are cancelled 2 hours before its departing time). Similarly, for international routes, their cancellation charges of INR 3,500(if flight cancellation is informed 4 hours prior to departure).

Each airline has their own cancellation procedure. Also, there are no additional taxes levied other than the cancellation fee.

However, many airlines even allow “zero cancellation charges” if the flight is cancelled voluntarily within 24 hours of booking. Sounds great right!

Are my airlines charging taxes on ancillary products and services too?

You might have experienced some ancillary fee sourced in form of either baggage fee, onboard food and other services rendered by your airlines. But the question that often strikes us is – do airlines levy any tax on such non-ticket’s sources or no? The answer is no, the airlines do not charge any tax on such fees.

Don’t let the airlines charge you certain taxes/charges in name of erroneous taxes. If ever suspect that, claim for it. Now you know how airlines charge taxes/charges on every facility they provide, don’t forget to look for each component in details, each time you book your travel ticket.

Pro Tip!

“If your base fare is supposed INR 50, then there is no way your tax imposed on it can be 200. Your tax has to be less than your base fare”.

Over to You!

As rationale passenger know what you deemed to know when it comes to knowing the components that you are paying through the pocket. On another hand, refundme.in – cancelled flight compensation provider will make sure your journey doesn’t ruin in cases of flight cancellation & denied boarding.

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