To contain the rise in jet fuel prices and its cascading impact on air ticket prices, Civil Aviation Ministry will urge the Finance Ministry to bring the particular fuel type under the ambit of GST.
Civil Aviation Secretary Rajiv Nayan Choubey on Tuesday said, a proposal will be made to the Ministry of Finance to bring air turbine fuel (ATF) under the ambit of GST to contain the rise in jet fuel cost due to high global crude oil prices.
Since January 2017-May 2018, the rise in global crude oil prices have pushed ATF cost by 40 per cent. Currently, state levies add anywhere from 2 to 30 per cent extra on the sale of jet fuel. Under the GST regime the cost is expected to come down substantially.
However, the decision to bring the particular fuel type under the GST ambit will depend upon the Finance Ministry as the same will be required to be mooted by it in the GST Council. Read More…