In a response to an unstarred question in the Lok Sabha, the Ministry of Finance provided clarification on the Goods and Services Tax (GST) rate for User Development Fees (UDF). Responding to a question from Shri Matheswaran V S, the Minister of State for Finance, Shri Pankaj Chaudhary, stated that a GST rate of 18% is applicable on the UDF. The minister's response also clarified that airline operators collect this fee as an agent on behalf of the airport operator. GST rates and exemptions are prescribed on the recommendations of the GST Council, a constitutional body comprising representatives from both the Union and State/UT Governments. The provided answer confirms the current rate and the collection mechanism but does not detail any changes since 2017.

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.

******