Civil Aviation Ministry likely to approach GST Council for inclusion of ATF under tax regime
New Delhi: The Civil Aviation Ministry is more likely to strategy the GST Council quickly for bringing aviation turbine gas (ATF) below the tax regime.
A sign to this impact was given by a senior official of an airline right here following a gathering with Minister of State for Civil Aviation Jayant Sinha.
The assembly was attended by Air India CMD Pradeep Singh Kharola, Pawan Hans CMD B P Sharma, the CEO of a non-public airline and the chief monetary officers of different carriers.
“We now have given our suggestion to the ministry and the minister is more likely to meet the GST Council quickly to current our case,” the senior airline official mentioned.
Whereas varied different points dealing with the airline trade have been raised by the trade, the distinguished one was the inclusion of ATF below the Items and Providers Tax (GST) regime.
At the moment, jet gas or ATF just isn’t below the GST ambit and the levy on it varies from state to state.
Jet gas accounts for a big chunk of an airline’s operational prices which additionally has an affect on air ticket costs.
Over the past winter session of Parliament, Sinha knowledgeable in a written reply that his ministry had requested the Ministry of Finance to incorporate aviation turbine gas within the ambit of the GST regime with full enter tax credit score on the earliest potential.
The lengthy standing demand for a slash within the GST charge within the aviation upkeep, restore and overhaul (MRO) trade was additionally mentioned, mentioned one other official on the situation of anonymity.
GST is at the moment levied at 18 per cent on the MRO trade. The MRO Affiliation of India has warned that the trade may face a closure if the GST “anomaly just isn’t set proper”.
The affiliation contended that the airways have been discovering it cheaper to ship their plane abroad for upkeep though they value extra. He mentioned the fee profit that the MRO trade loved due to low value of labour in India — USD 20 to USD 35 an hour — had been eroded as a result of GST burden.