Flights Are Now Cheaper, Thanks To GST!

By BankBazaar | July 3, 2017

Flights Are Now Cheaper Thanks To GST

If you’ve been planning a vacation, a weekend getaway or even a long sabbatical to lands where you don’t have to keep in touch with your nosy relatives, then there can be no better time than the present to whip out your Credit Card and get onto your favourite travel portal to book your flights.

With the implementation of GST from 1st July, 2017, flight tickets are now cheaper and more affordable. According to the new goods and service tax (GST) regime, the tax rate for economy air tickets has been reduced to 5% from the previous rate of 6%. This should be welcome news for scores of travellers across the country who are planning to get away from the rigmarole of daily life.

Additional Reading: 9 Tips To Make Holidays Affordable

However, travellers who like to travel in the lap of luxury will probably weep into their gold-embroidered pillows since business class tickets are all set to become more expensive. The tax rate for business class flight bookings will rise from the previous rate of 9% to a whopping 12%. Better keep that champagne on ice for a while longer.

Additional Reading: GST Rates Revised For 66 Items

Reaction From Industry Experts

While this news may see us either crack a smile the size of the grand canyon, or contemplate yelling choice words into it, depending on what kind of a traveller you are, industry experts say that the announcement dovetails well with the government’s plan to ensure that air travel is cheaper and more affordable for the common man.

The move is expected to give the domestic airline travel industry a boost. India currently has the third highest domestic aviation traffic in the world, behind only the United States and China.

Sharat Dhall, COO, Yatra stated that the move would be good for the domestic airline sector and will help push the current growth momentum it is experiencing, much further. He also stated that with economy airfare becoming cheaper, the industry will see a rise in passenger growth.

Additional Reading: Affordable Summer Vacation Destinations To Head To This Year With The Family

Make The Most Of Airline Credit Cards

If this bit of news has you reaching for your suitcase and swimsuit, take some time out to check out these fantastic Airline Credit Cards that will definitely give you more bang for your buck when you head out on vacation.

Additional Reading: 4 Ways A Credit Card Can Spice Up Your Vacation

The American Express Platinum Travel Credit Card

The American Express Platinum Travel Credit Card offers a ton of amazing rewards and offers to the discerning traveller. With the new GST regime set to roll into town, this could be the perfect companion to carry along on your travels.


·  Zero first year fee
·  Spend  Rs. 1.9 lakhs in a year and get travel vouchers worth up to Rs. 7,700
·  Spend  Rs. 4 lakhs in a year and get Taj Group vouchers worth  10,000 and additional travel vouchers worth up to Rs. 11,800
·  Get 4 complimentary visits per year to 29 airport lounges in Delhi, Mumbai, Bengaluru and 10 other cities
·  Get 3% cashback at leading fuel stations across India
·  Complimentary Priority Pass membership, with US$99 annual membership fee waived

Additional Reading: Everything You Need To Know About Airline Credit Cards

Jet Airways ICICI Bank Coral American Express Credit Card

This card not only comes with great rewards and joining perks for travellers, it also gives movie buffs extra incentive to make this particular Credit Card an indispensable part of their wallet.


·  Get 2,500 welcome bonus JPMiles on joining
·  Get a Shopper’s Stop Voucher and Provogue vouchers on joining worth Rs. 200 and Rs. 2,499 respectively
·  Get 1,250 renewal bonus JPMiles every year
·  Buy one get one free movie tickets through the week through BookMyShow
·  Minimum 15% savings on your dining bill at over 2,500 restaurants across India courtesy of the Culinary Treats program
·  The first 1,000 cards issued via BankBazaar will get an additional 250 BookMyShow voucher

Additional Reading: Scratch That Travel Itch With These 5 Travel-Friendly Credit Cards

Yatra SBI Card

This Credit Card should make its way into your pocket for all the right reasons, since it comes jam-packed with a bunch of excellent offers for anyone looking to hop on a flight and head into the great, wide open.


·  Air ticket discount vouchers from Yatra worth Rs. 8,250 on joining
·  Exclusive access to Mastercard airport lounges in India
·  Rs. 1,000 and Rs. 4,000 instant discount on domestic and international flight bookings respectively
·  1% fuel surcharge waiver across all petrol pumps
·  6X reward points on every Rs. 100 spent on dining, movies, entertainment, departmental, grocery and international spends
·  Paperless approval on your application

As the new GST regime looms over the horizon, this could be the perfect time to take advantage of the Credit Card offers mentioned above and go on a holiday to remember. Oh, and don’t forget to apply for Travel Insurance, if you want to stay protected on your travels, to give you some more peace of mind.

Looking for more offers on Airline Credit Cards?

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Category: Money Management

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