Luxury travel in India is set to become more expensive as the GST Council raises taxes on private jets, yachts, and premium airfares under its revised GST 2.0 framework. Effective September 22, aircraft for personal use, typically private jets and helicopters operated outside scheduled commercial services, will now attract a flat 40 percent GST, up from the earlier 28 percent GST plus a 3 percent compensation cess.

Yachts and other pleasure vessels will also fall under the 40 percent GST slab, closing a long-standing gap in the taxation of luxury assets. This marks a significant increase in acquisition and import costs for charter operators and ultra-high-net-worth individuals.

Non-economy class air tickets will see an increase from the earlier 12 percent GST to 18 percent, with airlines expected to pass on the added cost to passengers. Business and first-class travelers will experience a noticeable rise in fares amid strong demand for premium travel.

The GST Council’s revised structure underscores a clear policy message: discretionary flying and sailing are now subject to higher tax burdens, while services such as drones, simulators, and freight operations move to lower GST slabs. Luxury enthusiasts and operators of high-end travel assets should prepare for increased costs as these changes come into effect.