Bring ATF Under GST: Amidst the ever-increasing fuel inflation, good news can come for air travelers.
The government is going to discuss bringing aircraft fuel under the purview of GST. A decision on ATF can be taken in the upcoming meeting of the GST Council.
Air passengers can get relief amid rising fuel prices. The government has indicated that there may be a cut in the price of fuel. Actually, Finance Minister Nirmala Sitharaman is going to discuss bringing Aircraft Fuel (ATF) under the purview of GST in the next meeting of the GST Council.
The Finance Minister said, ‘The rising fuel prices globally are a matter of concern. When the GST system was implemented on July 1, 2017, more than a dozen levies from the Center and states, five commodities – crude oil, natural gas, petrol, diesel and ATF – were kept out of its purview. A decision on ATF can be taken in the upcoming meeting of the GST Council.
Council will take the final decision
Sitharaman said in a post-budget discussion with Assocham, “The final decision will be taken by the council regarding the inclusion of ATF in the GST.” It is not only in the hands of the Centre. It will be sent to the GST Council. It will be included in the subjects of the next council meeting so that it can be discussed.
SpiceJet founder proposed
SpiceJet founder Ajay Singh has proposed to bring ATF under GST, on which Finance Minister Sitharaman said that rising fuel prices are a matter of concern. This will be considered. Singh had said that crude oil has reached $ 90. Rupee is at 75 level against dollar. In such a situation, the civil aviation sector has been greatly affected. Your support will be of great help to bring ATF under GST.
State governments also levy VAT
It is noteworthy that the central government levies excise tax on ATF and the state governments also levy VAT. On the other hand, these taxes have been increased due to rising oil prices.
The Finance Minister said that the rising global fuel prices are a matter of concern not only for the airline but for all of us. Actually, this concern is bigger for the airline as they have not fully recovered after the pandemic.
Sitharaman said that she will also talk to banks about what can be done for the airline sector.
