Bring ATF under GST: Min
New Delhi, Dec. 28: The civil aviation ministry is pitching for bringing aviation turbine fuel ( ATF) under the GST regime, Parliament was informed on Thursday.
Currently, jet fuel or ATF is not under the GST ambit.
“This ( civil aviation) ministry has requested ministry of finance to include aviation turbine fuel in the ambit of GST regime with full input tax credit at the earliest possible,” MoS ( civil aviation) Jayant Sinha said.
Jet fuel accounts for a significant chunk of an airline’s operational costs which also has an impact on air ticket prices.
To a query on whether the J& K government had brought it to the notice of the aviation ministry that the airfares to destinations in the state are irrationally exorbitant, particularly during winter, Mr Sinha said his ministry has received a communication on the issue.
“This ministry had received a communication from the Jammu & Kashmir government requesting regulation of airfares of carriers operating in the Jammu and Srinagar sectors so that price stability is brought about and the cost of air travel is controlled within reasonable limits,” he said.
“In response it has been highlighted by the ministry that the airlines are free to fix reasonable tariff under the provisions... keeping in mind, inter alia, the market, demand, seasonality, and other market forces,” he said.