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Civil Aviation Ministry seeks two-months deferment of GST rollout

Carriers, including Air India, have expressed concern over certain aspects of GST

Press Trust of India  |  New Delhi 

Civil Aviation Ministry seeks two-months deferment of GST rollout

The has sought postponement of the implementation by two months on the ground that airlines need more time to revamp their systems to comply with the new tax regime.

The goods and services tax (GST) is scheduled to be rolled out from July 1 and preparations are at an advanced stage.


Against this backdrop, the ministry has written to the finance ministry seeking deferral of the implementation by two months.

According to a senior ministry official, the deferment has been sought as airlines are not yet ready with their systems to be in compliance with

Carriers, including Air India, have expressed concern over certain aspects of

Airline officials said making changes in the global ticket distribution system to ensure compliance with would take time. Lack of clarity on certain areas pertaining to airlines business has also given rise to concerns of higher operational cost.

Among others, airlines are in a fix over the possibility of movement of "stocks (equipment or aircraft parts)" being taxed under

On Wednesday, Minister of State for Civil Aviation chaired a meeting on preparedness with various aviation industry stakeholders, including airlines, airports and cargo.

Earlier this week, the finance ministry said is on track for scheduled implementation from July 1 and pushed back against rumours of a delay.

"The rumours about implementation being delayed are false. Please do not be misled by it," Revenue Secretary Hasmukh Adhia had said.

First Published: Thu, June 15 2017. 16:14 IST
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