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Civil Aviation Ministry likely to approach GST Council for inclusion of ATF under tax regime

Press Trust of India  |  New Delhi 

The Civil Ministry is likely to approach the soon for bringing turbine fuel (ATF) under the tax regime.

An indication to this effect was given by a senior of an here following a meeting with of State for Civil Jayant Sinha.

The meeting was attended by CMD Pradeep Singh Kharola, Pawan Hans CMD B P Sharma, the of a and the of other carriers.

"We have given our suggestion to the ministry and the is likely to meet the soon to present our case," the senior said.

While various other issues facing the were raised by the industry, the prominent one was the inclusion of under the (GST) regime.

Currently, jet fuel or is not under the GST ambit and the levy on it varies from state to state.

Jet fuel accounts for a significant chunk of an airline's operational costs which also has an impact on air ticket prices.

During the last winter session of Parliament, Sinha informed in a written reply that his ministry had requested the to include aviation turbine fuel in the ambit of the GST regime with full input tax credit at the earliest possible.

The long standing demand for a slash in the GST rate in the aviation maintenance, repair and overhaul (MRO) industry was also discussed, said another on the condition of anonymity.

GST is currently levied at 18 per cent on the MRO industry. The has warned that the industry could face a closure if the GST "anomaly is not set right".

The association contended that the airlines were finding it cheaper to send their aircraft overseas for maintenance although they cost more. He said the cost benefit that the MRO industry enjoyed because of low cost of labour in -- USD 20 to USD 35 an hour -- had been eroded due to the GST burden.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 17:20 IST