Pitching for inclusion of Aviation Turbine Fuel (ATF) under the purview of the Goods and Services Tax (GST) regime, Union Minister Suresh Prabhu said that the move will ensure a level playing field for the domestic airline industry. He also said that input costs should be competitive for any sector.
The Minister has stated that different rates of taxes in states pushes the price of ATF. He said “each state has a different tax. Due to this, the refuelling (for airlines) cost completely changes. We feel that it should be done. I hope the GST Council takes a call on that and we are pursuing this with the council continuously.”
Prabhu further said that airlines have been lobbying hard to bring ATF within the GST. He also said that airlines could expect an annual relief of up to Rs 5,000 crore by way of input tax credit if fuel is part of the GST. He added that the move could cushion them from the burden of increased jet fuel prices, besides providing relief to customers.
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