Friday, June 30, 2017

GST to impact aviation sector, says Union minister Ashok Gajapathi Raju

New Delhi: As the government gets all set to launch GST at a gala event this evening in Parliament, the murmurs within sectors about the unpreparedness of things don't seem to have died out.
Putting a spanner in the works this time is Union Civil Aviation Minister, Ashok Gajapathi Raju. Speaking to India Today exclusively a day ahead of the big GST bash, the minister said the aviation sector isn't ready for GST.
"GST will affect aviation sector. Because petroleum products have been kept out of GST. ATF is highly taxed in quite a few states, so that is bound to affect aviation", he said.
Given this scenario, airlines will tend to take advantage of states that have lower taxes, since they won't get any set-offs on their service taxes, Raju said.
The Civil Aviation Ministry recently wrote to the Finance Ministry on behalf of airlines, asking for more time to become GST-compliant.
Airlines complained that there were several outstanding issues that they needed clarity on, including time to effect the amendments to the global distribution system as per the new GST invoice rules. The Civil Aviation Ministry retracted that letter as soon as the media got a whiff of it. Now they say they are ready.
30/07/17 Poulomi Saha/India Today