**Summary:**
This document summarizes the Government of India's policy regarding the Goods and Services Tax (GST) applicable to User Development Fees (UDF) charged to airline passengers. As of July 28, 2025, the GST rate applicable to UDF is 18%. This GST is levied on the UDF collected by airline operators acting as agents for airport operators. The GST rates are determined based on the recommendations of the GST Council, a constitutional body with representatives from both the Union and State/UT Governments. The policy has been in effect since 2017. The information was provided by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, in response to Lok Sabha Unstarred Question No. 1200 raised by Shri Matheswaran V S.
Key Entities Referenced
Goods and Services Tax: A comprehensive indirect tax on manufacturing, sale, and consumption of goods and services throughout India.
GST Council: A Constitutional body in India responsible for making recommendations on GST rates and exemptions, comprising members from the Union and State/UT Governments.
Ministry of Finance: The Indian government ministry responsible for financial matters.
Lok Sabha: The lower house of the Parliament of India.
User Development Fee: A fee charged from passengers by airline operators, collected as an agent of the airport operator.
SHRI MATHESWARAN V S: Member of Parliament who raised the question regarding GST on User Development Fees.
SHRI PANKAJ CHAUDHARY: Minister of State in the Ministry of Finance, who provided the answer to the question.
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.
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