Will Airlines Cut Air Fares After GST Rollout? Don't Count On It

The Goods and Service Tax (GST) for most products and services have been finalised by the GST Council headed by Union Finance Minister Arun Jaitley in Srinagar last week. As the Ministry of Civil Aviation tries to make flying affordable for the masses, GST on the economy class air travel has been lowered to 5 per cent, down 100 basis points from the existing service tax rate. Meanwhile, GST on bus…