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Bringing jet fuel under GST will boost growth: SpiceJet chief at WEF

He said the move would bring down fares, help aviation sector see growth and thus compete globally

Dilasha Seth 

Ajay Singh
Ajay Singh

co-founder on Friday pitched for bringing aviation- turbine (ATF) under the ambit of goods and services tax (GST) to lower The move will help bring down fares and boost the sector’s growth, Singh said at the World Economic Forum’s

Bringing under will help airlines claim input tax credit, which will help lower

“In aviation cost, ATF is the biggest item. We want it to be reduced. States should reduce and bring it within the so that we can claim If that happens, prices will come down, fares will come down and the will see growth,” said Singh at the conference organised in partnership with the Confederation of Indian Industry (CII).

On the states’ insistence, has been kept out of the and hence continues to face the cascading effect of multiple taxes. However, certain products, including cooking gas, kerosene and naptha, are a part of the

He added the sector was discussing GST-related issues with the government.

is a concern... these glitches would be sorted out over a period of time,” said Singh.

He added for the sector to grow and compete globally, the taxes needed to come down. “We cannot have the most expensive in the world, the most expensive ATF in the world, the most expensive airports in the world… now we have added to that by putting the GST, which is a really large tax on all sorts of activities related to aviation,” said Singh.

is also looking at buying at least 100 in order to increase its reach in areas which do not have air strips. are fixed-wing aircrafts that can take off and land on both water and airfields.

First Published: Sat, October 07 2017. 02:19 IST