Reduced VAT on ATF to spur growth of aviation industry
AVIATION & AIRPORTS

Reduced VAT on ATF to spur growth of aviation industry

The Civil Aviation Ministry said that keeping aviation turbine fuel (ATF) outside the ambit of the Goods and Services Tax (GST) will not restrict traffic growth in the sector as 31 states and union territories have already reduced VAT (between 1 and 5 percent) on it and the five remaining ones ...

The Civil Aviation Ministry said that keeping aviation turbine fuel (ATF) outside the ambit of the Goods and Services Tax (GST) will not restrict traffic growth in the sector as 31 states and union territories have already reduced VAT (between 1 and 5 percent) on it and the five remaining ones are also likely to do so in the near future, lifting the burden of high costs on airlines. The Union Civil Aviation Ministry has been lobbying with the Finance Ministry to bring ATF into the ambit of GST.  If ATF is included as a part of GST, airlines will enjoy the benefit of input tax credit which is currently not applicable as jet fuel is taxed under VAT. 

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