You are here: Home » Economy & Policy » News » GST
Business Standard

Jayant Sinha asks FM to bring ATF under GST as rupee, oil woes hit airlines

The Ministry of Civil Aviation and Petroleum Ministry have asked the Ministry of Finance and all the states to consider bringing ATF under the GST framework

Topics
Gst On Fuel  |  Oil Prices  |  Rupee Fall

Press Trust of India  |  New Delhi 

GST, goods and services tax
Photo: Shutterstock

Minister of State for Civil Aviation Monday urged Finance Minister to bring aviation turbine fuel (ATF) under the ambit of GST.   

Despite being one of the fastest growing domestic aviation markets in the world, local carriers have been facing tough business conditions, especially with surging and depreciation of the rupee. As players look to woo more passengers with cheap fares, airlines have not been fully able to increase ticket prices. 

"The Ministry of Civil Aviation and Petroleum Ministry have asked the Ministry of Finance and all the states to consider bringing ATF under the GST framework. We would like that to happen. So we discussed that matter as well," Sinha told reporters after meeting Jaitley.  
 

The final call, however, would be taken by the GST Council, he added.

ATF constitutes approximately 35-40 per cent of operational cost of an airline in India. 

The meeting was also attended by Finance Secretary Hasmukh Adhia and Civil Aviation Secretary R N Choubey.

The meeting was to discuss ways to lower input costs for airlines, Choubey said. 

When (GST) was introduced on July 1 last year, five commodities -- crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) -- were kept out of its purview for the time being. 

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 29 2018. 22:00 IST
RECOMMENDED FOR YOU
.