Tax structure for Aviation

Industry before GST

 Service tax was applicable on tickets if the
passenger embarks in India for the journey.
 The air travel used to have a tax rate of 6% for
economy travel and 9% for non-economy travel.
 Carriers were not required to pay any indirect taxes
on lease of aircraft into India.
 The maintenance and repair of aircraft which were
undertaken outside India did not attract service tax
 Services which were rendered by overseas
Computer Reservation Systems companies did not
attract service tax.
 Both VAT and Service tax were applicable on
maintenance activities undertaken in India.
 Services rendered by airports and other service
providers at the airports (such as ground handling,
cargo handling) were taxable based on the place of
performance of the services, i.e. location of airport.