Travelling after GST 2.0: Tax hike hits premium flights, will rail passengers pay more too?

Premium airfares are set to increase as the GST Council has approved raising the tax on business and first-class tickets from 12% to 18%, effective September 22, 2025. Economy class tickets and AC train travel will remain unchanged at 5%. For premium tickets booked and paid for before the deadline, the old 12% GST rate will still apply.

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