Tuesday, August 21, 2018

Airlines reporting losses, government to move further to bring aviation tribunal fuel under GST

Delhi: Keeping in view the poor financial condition of airlines, the government has decided to move further to bring the aviation turbine fuel (ATF) under the GST.

Officials said that finance ministry and petroleum ministry are of the view that ATF should be under GST. However, some States which earn a lot of revenue through the tax on ATF has not given consent for this. Now, the government will talk to the States on this issue and it will further be kept under consideration in the next GST council meeting in September.

The matter was also discussed in a meeting with the Ministry of Finance on Monday and it came out that many states including Karnataka, Tamil Nadu, Maharashtra and others have not agreed on this. These States earn major revenue through VAT on the ATF. Currently, ATF attracts about 40 % of taxes comprising the VAT and central excise duty.

Sources said that it was discussed that the States will be contacted through video conferencing on the issue in the coming days.
21/08/18 New Indian Express
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