18% GST Fixed on User Development Fees Charged by Airlines: Government Clarifies in Lok Sabha

The government has clarified in Lok Sabha that an 18% GST is fixed on User Development Fees (UDF) charged by airlines. This clarification addresses ambiguities regarding the taxation of various components of air travel. User Development Fee is typically collected by airlines on behalf of airport operators for the development and maintenance of airport infrastructure. By explicitly stating the GST rate, the government provides clarity to both airlines and passengers, ensuring uniform application of tax and reducing scope for disputes regarding air travel charges.