With ever-increasing fuel prices, flying may become more affordable in the future. This has been stated by the government. Consumers are anticipated to benefit from this. In reality, Finance Minister Nirmala Sitharaman recently stated that bringing Aircraft Fuel (ATF) under GST will be reviewed at the GST Council’s next meeting.
Globally growing fuel prices, he said, are a source of concern. When the GST system went live on July 1, 2017, it included more than a dozen levies from the federal government and states, but five commodities – crude oil, natural gas, gasoline, diesel, and ATF – were left out. The GST Council is expected to make a decision on ATF at its next meeting.
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Everything is not in the hands of the central government, Sitharaman with AssochamBudget
Later in the debate, it was stated that the council will make the final decision on whether or not ATF should be included in GST. It’s not just in the Centre’s hands. The GST Council will receive it. It will be discussed at the council’s next meeting.
Crude oil prices have dropped about $ 90
Sitharaman expressed alarm over growing fuel prices, citing SpiceJet founder Ajay Singh’s proposal to bring ATF under GST. This will be taken into account. According to Singh, the price of crude oil has risen to $ 90. The rupee is now trading at 75 versus the dollar. The civil aviation sector has been severely harmed as a result of this predicament. Your assistance will go a long way toward bringing ATF under GST.
ATF is subject to excise duty and VAT, with the central government levying excise tax and state governments levying VAT. As a result of rising oil costs, these levies have also been raised. The Finance Minister stated that growing worldwide gasoline prices are a source of concern for everyone, not just the airline. This is a greater issue for the airline, which has yet to fully recover from the pandemic. Sitharaman also stated that she will speak with banks to see what can be done to help the aviation industry.
