Thursday, June 15, 2017

GST roll out from July 1: Airlines not ready with new ticketing rules, says Civil Aviation Ministry

Mumbai: The Aviation Ministry has intimated its reservations with the July 1 roll out of the Goods and Services Tax (GST) regime to the Finance Ministry, saying that the some domestic airlines, including national carrier Air India are not yet prepared for it. The former has requested a postpone of GST roll out to September, instead of July, saying that airlines have expressed an inability in shifting to the new tax regime so soon.
A report in The Hindu quoted an anonymous Aviation official as saying, “We have asked the Finance Ministry to give further time for implementation of GST, expressing the airlines’ view that effecting a change in the global ticketing system would require time.” This comes even as the government clarified that there are going to be no delays in the implementation of GST. Revenue Secretary Hasmukh Adhia had warned people against believing any rumors related to delays in GST implementation.
The Aviation Ministry has told Finance Ministry that all full-service airlines like Jet Airways and Air India, rely on Global Distribution System (GDS) software for ticket bookings through travel agents and websites. The system will need to be updated according to the new tax regime and that will require some more time.