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  • Issue 15 – Excess baggage

    Passengers whose luggage exceeds their allotted weight limit may be required to pay an 'excess baggage' charge.

    Issue

    What is the GST treatment of 'excess baggage' charges in relation to the GST-free transport of a passenger?

    This issue is a public ruling for the purposes of section 105-60 of schedule 1 to the Taxation Administration Act 1953.

    Decision

    The transportation of the passenger's baggage is an integral part of the supply of transportation to the passenger. The 'excess baggage' charge does not constitute a separate supply. GST applies to the 'excess baggage' charge in the same manner as it applies to the supply of transportation.

    References

    'Excess baggage' charges on GST-free flights are covered by either items 1, 2, or 3 in the table in section 38-355.

      Last modified: 28 Jun 2010QC 17679