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The Government of India has confirmed that an 18% GST is applicable on User Development Fees (UDF) collected from airline passengers. This clarification was provided by the Minister of State for Finance, Shri Pankaj Chaudhary, in response to an unstarred question raised in the Lok Sabha. The question, posed by Member of Parliament Shri Matheswaran V S, sought details on whether GST has been fixed on UDF charges levied by airline operators since 2017. In reply, the Minister stated that GST rates
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FAQ :
The GST rate applicable on User Development Fees (UDF) is 18%.
The Government of India, through the Minister of State for Finance, Shri Pankaj Chaudhary, confirmed the GST rate in the Lok Sabha.
User Development Fees are charges levied on departing passengers at certain airports to fund infrastructure development. They are typically fixed by airport operators and collected by airlines during ticket booking.
GST rates and exemptions are determined by the GST Council, a constitutional body with representatives from Union and State/UT governments.
Airlines collect the User Development Fee (UDF) as an agent of the airport operator.
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