By Kavita Mistry 
Luxury flying and sailing will become markedly more expensive from September 22, with the GST Council raising levies on private aircraft, yachts and premium travel.
Aircraft for personal use – typically private jets and helicopters operated outside scheduled commercial services – were earlier taxed at 28 per cent GST plus a 3 per cent Compensation Cess, an effective rate of 31 per cent. They will now fall under a flat 40 per cent GST slab. The shift eliminates the cess mechanism and significantly raises the cost of acquisition and import for charter operators and ultra-high net worth individuals.
Yachts and other pleasure vessels face the same treatment, moving from 28 per cent plus 3 per cent cess to 40 per cent, closing a long-standing gap in taxation of luxury assets.
Premium air travel is also being pulled higher. Non-economy class tickets, until now taxed at 12 per cent, will draw 18 per cent GST. Airlines are expected to pass on the additional levy to passengers, making business and first-class fares more expensive at a time when premium demand has been firm.
The Council’s message is unambiguous: discretionary flying and sailing will now attract a sharper tax burden, even as drones, simulators and freight services shift to lower GST slabs.
