MoS Clarifies 18% GST on Airline User Development Fees in Lok Sabha

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.