Saturday, July 01, 2017

Aviation sect to face teething probls due to GST: SpiceJet CMD

The aviation sector is likely to face "teething problems" for four to six months due to the implementation of the Goods and Services Tax (GST), SpiceJet CMD Ajay Singh said today.

He, however, said his airline was "fully prepared" to usher in the indirect tax regime from July 1, and that airlines were working along with the government to resolve any concern.

The aviation ministry had earlier sought postponement of the GST implementation by two months on the ground that airlines needed more time to revamp their systems to comply with the new tax regime.

In a U-turn, the ministry later said it was prepared for the GST roll-out from the stipulated date.

"I think it is a revolutionary reform and the government needs to be lauded for its courage to go forward with such a big reform. Any such reform will have its share of teething problems and so will this one," Singh told reporters at an event here.

Double taxation on import of aircraft wherein their import as well as leasing of the same plane will invite separate taxes is an area of concern that the airlines have shared with the government, he said.
30/06/17 PTI/DNA