Airlines seek GST rollout delay citing ticketing issues
NEWDELHI: Airlines have sought a delay in the roll out of the goods and services tax (GST) on technical grounds.
Most of the airlines are dependent on global computer reservation system for ticket bookings which are hosted abroad and need to be changed to allow for new entries, said a person with knowledge of the subject who did not wish to be named.
Full-service airlines such as Air India, Jet Airways, Vistara use a ticketing system for their flight bookings that serves over 800 airlines internationally and will take slightly longer to be tweaked compared with those used by budget airlines.
Low-cost airlines like IndiGo, SpiceJet, AirAsia use Navitaire. GoAir uses the Radixx passenger booking system.
The aviation ministry has also written to revenue secretary Hasmukh Adhia. “Considering the compliance requirements under GST (global distribution system), significant amendments would be required in the GDS for generating tickets as per the GST invoice rules. It is therefore requested that time up to 1st September may be considered for implementation,” the same person said recalling the letter.
The current compliance date is July 1.
The ministry has not heard back from Adhia yet, he added.
The airlines have also asked for three more clarifications on some of the GST rules, said another person who did not wish to be named
These include taxation on international flights and input credit for economy class among others. “The key issue is the GDS which they are asking to be resolved,” this person said.
Airlines did not offer any comments on the subject.
GST subsume excise and service tax and other local levies, dismantles inter-state barriers to trade in goods and services and unify India into a common market.
Economy class air travel is expected to become marginally cheaper with tax rate fixed at 5% against the existing 6% under GST. However, for those travelling business class, tickets will become dearer as the tax will go up from 9% to 12%.