Company News :
People travelling for business purposes on business class air tickets
are now required to submit details about their companies to avail tax
benefits under the GST regime.
The
Goods and Services Tax (GST) framework, which came into effect from
July 1, provides for certain input tax credit only on business class
tickets and there is no such provision on economy class fares.
Air
India, Jet Airways and Vistara - the three domestic carriers that offer
business class seats have already sent out communications to inform
passengers that GSTIN details need to be submitted in order to avail the
benefits.
The GST Identification Number is issued to entities that are registered under the new tax regime.
"It
is now mandatory for guests travelling for business to add their
company's GST details at the time of booking. To ensure a seamless
experience, we request that you inform your guests travelling for
business to register on our portal and claim up to 12 per cent back on
flights," Jet Airways said in a communication.
The
GST rate on first class and higher class tickets is 12 per cent while
the rate is 5 per cent on economy class tickets. The GST would also
replace service tax, krishi kalyan cess and swachh bharat cess.
After
submission of the details, the airlines would generate GST invoice for
the particular travel and that invoice can be used to claim the
benefits.
"It
is not compulsory to provide GST details. GST registration details for
your business or company may be optionally provided if a customer wishes
to claim input tax credit on the GST paid if travelling for business
reasons," Vistara said in a communication.
According
to Air India, all passengers requiring GST invoice for their tickets
have to complete the one-time registration process on its website by
entering the relevant details.
In
its communication, Jet Airways also made it clear that "any bookings
for leisure travel will not be entitled for GST benefits".
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