GST body tightens flyer data sharing rule for airlines

New Delhi: The Central Board of Indirect Taxes on Wednesday amended regulations for record keeping for aircraft operators with immediate effect, making it mandatory for every aircraft operator to transfer passenger data before 24 hours of departure time and at wheels-off time.

Earlier, aircraft operators had the option to transfer data either within 24 hours of departure or at the wheels-off time (the time when the aircraft is assigned to take off). However, the new amendment eliminates this flexibility, mandating that operators must provide passenger details at both intervals.

Officials said the new rule has been brought in the light of instances of underpayment of goods and services tax (GST) by airlines on cancelled tickets.


Currently economy class flight tickets are taxed at 5% GST, while business class tickets are taxed at 12% GST. Businesses can claim input tax credit (ITC) on flight tickets if the travel is for business purposes and a GST-compliant invoice is provided. "The DGGI detected that many airlines were collecting GST on last-minute cancellation but were not depositing it with the exchequer," an official told ET on condition of anonymity.

In addition, many airlines were claiming ITC on these cancelled tickets, the official said.