GST 2.0- As soon as the festive season begins, people start planning trips and family getaways. But this time, another question is on everyone’s mind: have flight and train tickets gotten cheaper after GST 2.0? The new GST system came into effect in the country on September 22nd, and this has led to changes in taxes on hotels, flights, and several services. Now, it’s important to know whether travel expenses will be lighter than before or will be a bigger burden on your wallet. So, let’s find out…
New GST rate
The GST Council has made significant changes to the GST structure. Previously, there were four different slabs of 5%, 12%, 18%, and 28%, which have now been reduced to just two slabs: 5% and 18%.
Economy class relief
Common travelers need not worry about the change in GST rates. Economy class tickets offer relief. Economy class tickets will still attract only 5% GST, as before. This means there is no change in the fares for regular tickets. This will make air travel more affordable during the holidays. Whereas business class tickets previously attracted 12% GST, this has now increased to 18%, as the 12% slab has been abolished in GST 2.0. The 18% GST on business class flight tickets has made fares even more expensive.
Luxury travel such as private jets, helicopters, yachts, and luxury boats will now be subject to a flat 40% GST. Previously, the tax was around 31%. This means that luxury travelers will find themselves even more vulnerable.
Relief on train tickets
There’s good news for railway passengers. GST on AC and premium train tickets will remain at 5%, as before. This means there’s no additional burden on train travelers. This is a relief for both daily commuters and those planning long trips during festivals.