Civil aviation min working on demand to bring jet fuel
under GST: Kharola
The civil aviation ministry is working on the airline industry's demand to bring Aviation
Turbine Fuel (ATF) under the ambit of GST and has taken up the matter with the finance
ministry, a senior official said on Friday.
Addressing a virtual event on global aviation and air cargo sector, civil aviation secretary
Pradeep Singh Kharola also said the ministry has taken specific steps for optimum
utilisation of the country's vast airspace which would help international airlines overflying
India as well as domestic carriers in saving costs.
ATF or jet fuel cost, which account for for 45-55 per cent of an airline's operating
expenses, in India is among the highest in the world and the industry has long been
demanding that it should be brought under the Goods and Services Tax (GST) regime.
"We are working (on bringing ATF under the GST) and the matter has been taken up
with the Ministry of Finance... It has to go to the GST Council. We are trying for that,"
At the event organised by industry body PHDCC, he also mentioned about steps taken
for optimum utilisation of the country's airspace. As a result of these measures, both
cargo and passenger airlines would be able to optimise the distance flown and save
costs, he added.
"We have seen that a large part of economic sectors faced great hardship and that was
true even for aviation. But I can say at least for Indian aviation, it also faced a lot of
difficulties but it survived. And the major contributor was air freight and the cargo,"
According to him, this shows the huge potential of air cargo, not only domestically but
Civil Aviation Ministry