Flying will cost more if you are not travelling economy class

NEW DELHI: Flying comfortably will cost a little more in commercial airlines and a lot more on personal aircraft from Sept 22. GST on non-economy class - premium economy, business and first cabins - has been hiked from 12% to 18%.

GST on economy class remains unchanged at 5%. Given the inelastic demand in the front of aircraft, that accounts for about 10% seats for airlines but a disproportionate share in revenue, airlines don't expect a dent in sales of premium cabins and may pass on the burden to flyers.Private jets are currently charged 28% GST plus 3% compensation cess, an effective rate of 31%. This will go up to a flat 40%. Ditto for "yachts & other vessels for pleasure or sports".ICRA's Jitin Makkar said airlines will pass on the (increased) GST to consumers. "However, this should not have a significant impact on the business class segment considering this segment's low price elasticity, though there could be some amount of downtrading to the economy segment." International Air Transport Association's Sheldon Hee, on the other hand, said: "This increase runs counter to the efforts of Indian carriers, which have been investing in their premium products to enhance travel experience."Meanwhile in a big boost to the drone segment, GST on unmanned aircraft has been cut to 5% from 28% & 18%.