High prices reignite demand for aviation turbine fuel under GST

With excise tax, ATF in India is one of the costliest in the world

With the rising price of aviation turbine fuel (ATF), airlines are asking that it be put under the goods and services tax (GST).

In a presentation to aviation ministry officials, which included the minister of state Jayant Sinha, they argued that doing so would actually mean more revenue for the government.

The broad contention is if jet fuel comes under the GST and the rate of taxation on passenger tickets is raised to 12 per cent, the government’s annual revenue will be Rs 103.53 billion, around 7 per cent higher than the latest figure of Rs 97.13 billion. The current