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GST on luxury travel to go up from September 22
Starting September 22, 2025, flying business class or buying a private jet is about to get pricier.
The GST Council has decided to bump up taxes on luxury transport—think private aircraft and yachts now face a flat 40% GST (up from 31%), while non-economy flight tickets will be taxed at 18% instead of the earlier 12%.
These changes are part of a move to simplify tax slabs and put more focus on taxing luxury spending.
Airlines, operators to pass on higher taxes
If you're eyeing premium air tickets or dreaming of chartering a yacht, expect steeper prices as airlines and operators pass on these higher taxes.
Meanwhile, sectors like freight, drones, and simulators are seeing tax relief—so the government's message is clear: luxury comes with a bigger price tag now.