Air fares may be cheaper soon, the proposal to bring ATF to GST
Air fares may be cheaper soon, the proposal to bring ATF to GST: Given the increasing financial pressure on airlines, the proposal to bring the ATF within the purview of the GST can be placed in front of GST Council.
 |
| Air fares may be cheaper soon, The proposal to bring ATF to GST |
The next meeting of GST Council is to be held on 30th September in Goa. There are already a lot of issues ready for this meeting. But, it is expected that the most important and important issue in this can be of ATF and Natural Gas. Given the increasing financial pressure on airlines, the proposal to bring the ATF within the purview of the GST can be placed in front of the GST Council.
Air fares may be cheaper soon, The proposal to bring
ATF to GST
The Ministry of Finance has also asked the Ministry of Finance to consider this proposal. The Ministry of Aviation has requested the Ministry of Finance to bring the ATF in the GST soon, citing increasing input costs. It is expected that it will be included in the next GST council meeting in the next meeting. If this happens then airfare can be cheaper.
GST is outside the scope of Jet Fuel On July 1, 2017, when GST was implemented, five products - crude oil, natural gas, petrol-diesel and aircraft fuels were excluded from its scope. Due to the loss due to the center and the states, they are getting delayed due to the immediate GST scope. However, natural gas and ATF are considered suitable to start the process.
The next meeting of GST Council is to be held on 30th September. The proposal to bring natural gas and ATF within the purview of the new indirect tax system can be brought in for discussion.
Government is reviewing
According to sources, considering the mounting pressure on the airlines, the finance ministry is also in favor of bringing the ATF into the GST scope. In the case of ATF, states are easy to celebrate because the number of states with more airport is less. The state like Assam, Odisha has already supported the introduction of ATF in GST. However, the government is currently reviewing the impact on revenue by including the ATF.
Jet Airways demand deteriorated from worsening
Due to the financial condition of Jet Airways, the demand for ATF to be brought under the purview of GST has been rising rapidly. Actually, 40 percent of the airline's operating cost goes to the ATF. In the current situation, ATF accounts for around 40 percent tax. If it is brought under the GST scope then the tax will be reduced and the financial condition of the airline is likely to improve.
Tax slabs are difficult
The biggest problem of attaching ATF to GST is its slab. ATF is proving to be difficult to keep GST tax in existing rates of 5, 12, 18 and 28 percent. At present, the center charges 14 percent of the excise duty on ATF. Apart from this, the state makes sales tax or VAT up to 30 percent. Odisha and Chhattisgarh have 5 percent VAT on aircraft fuels, 29 percent in Tamil Nadu, 25 percent in Maharashtra and Delhi and 28 percent in Karnataka.
What would happen if the ATF in the 28% slab?
In the case of ATF, the tax rate in large airports will be 39-44 percent. Sources said that this means that if a tax is levied at a maximum of 28 percent on ATF, then there will be a large loss of revenue. To avoid this, states may be allowed to put some VAT at high rates of ATF. However, for this, the states and states have to agree on this. He said that the 28 percent GST rate would mean the increase in the cost of ATF in low VAT states.
I Hope You Enjoyed This Article Please Share You Point Of View About This Article In Below Comment Box
Welcome to Accurate Pedia - Accurate News Of World Hello Friends My Name Is Shaikh Sahil. I Am 20 Years Old And I Completed My Bechlor Degree Of BCA. Currently Studying Master Degree MCA. Read More About Me
ConversionConversion EmoticonEmoticon