Notwithstanding the demand from the airlines, the government today said there was no proposal to bring Aviation Turbine Fuel (ATF) under GST.
"At present, there is no proposal to include ATF under GST," Minister of State for Civil Aviation Jayant Sinha said in the Rajya Sabha today.
Civil Aviation Minister Suresh Prabhu had earlier told PTI that the move will help cut the cost as airlines would get input tax credit.
ATF constitutes approximately 35-40 per cent of operational cost of an airline in India.
Sinha's statement come against the backdrop of Civil Aviation Secretary R N Choubey meeting senior officials of the Finance Ministry to impress the need for bringing ATF under GST.
Airlines, which are making a persistent demand for this, maintain that they would get an annual relief of Rs 3,000 to Rs 5,000 crore if ATF is included in GST.
In his written reply, Sinha said no analysis has been made on the impact of higher jet fuel prices on the airlines.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app