The Minister of State in Ministry of Finance Shri Pankaj Chaudhary in Lok Sabha on July 28, 2025 clarified that the Goods and Services Tax (GST) rate on User Development Fees (UDF) charged by airline operators has been fixed at 18% since 2017. This rate is based on recommendations by the GST Council, a constitutional body with members from both Union and State/UT governments. The UDF, collected by airline operators on behalf of airport operators, falls under this tax rate and is applicable uniformly across all such transactions involving passenger fees at airports.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 1200
TO BE ANSWERED ON MONDAY, JULY 28, 2025 / SRAVANA 6, 1947 (SAKA)
GST SLAB FIXED FOR USER DEVELOPMENT FEES
1200. SHRI MATHESWARAN V S:
Will the Minister of FINANCE be pleased to state:
Whether the Goods and Services Tax (GST) rate has been fixed for the User Development Fees (UDF) which are charged from passengers by the Airline operators and if so, the details thereof since 2017?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
GST rates and exemptions are prescribed on the recommendations of the GST Council, a Constitutional body comprising members from the Union and State/UT Governments. GST at the rate of 18% is applicable on the User Development Fee (UDF), which is collected by the airline operator as an agent of the airport operator.
The Answer can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/07/GST-SLAB-FIXED-FOR-USER-DEVELOPMENT-FEES.pdf
