India: To ease pressure on airlines, civil aviation ministry may seek inclusion of jet fuel under GST

In a bid to give relief to airlines struggling from high costs of fuel and a weaker rupee, the Civil Aviation ministry is set to seek inclusion of jet fuel in the Goods and Services Tax (GST). A report quotes Union Civil Aviation minister Suresh Prabhu as saying, “Fuel is an important variable cost for airlines. We are aware of the situation.” Civil aviation secretary RN Choubey said it will be a big relief for the industry if the GST Council decides to bring ATF under the ambit of GST. Currently, the airlines pay VAT levied by states on ATF. The proposal to include ATF under GST is currently before the GST Council. However, it has yet to be taken up for consideration. Since India is a net importer of fuel, the input costs of airlines have gone up. Ticket prices, however, have not risen proportionately due to overwhelming competition. <br/>