Aircraft lease costs to rise on GST levy

Aircraft leasing costs will go up with the introduction of five per cent levy under the goods and service tax (GST).
 
At present, cross-border aircraft leases carried out by scheduled airlines are not subject to Customs duty, central excise and value-added tax (VAT).
 
Among domestic airlines, IndiGo has the largest capacity induction plan. The airline, which ended FY17 with 131 planes, plans to induct 39 aircraft in FY18. Other airlines, including AirAsia, GoAir, SpiceJet and Vistara, have inductions this year.
 
"We had sought for continuation of tax exemption. The impact will be largely related to cash flows