Bringing jet fuel under GST will boost growth: SpiceJet chief at WEF
He said the move would
bring down fares, help aviation sector see growth and thus compete globally
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NEWS : Ajay Singh, owner of low-cost carrier
Spicejet, on Friday, pitched for bringing aviation turbine fuel (ATF) under the
ambit of goods
and services tax (GST) to lower cost. The move will help bring down
fares and boost the aviation sector’s growth, Singh said at the World Economic
Forum’s India Economic Summit.
Bringing
fuel under GST will help airlines claim input tax credit, which will help lower
cost.
“In aviation
cost, ATF is the biggest item. We want the ATF cost to be reduced. States
should reduce sales tax and bring it within GST so that we can claim input tax
credit. If that happens, prices will come down, fares will come down and the
aviation sector will see growth,” said Singh at the conference organised in
partnership with the Confederation of Indian Industry (CII).
On the
states' insistence, petroleum has been kept out of GST and hence continues to
face the cascading effect of multiple taxes. However, certain petroleum
products including cooking gas, kerosene and naptha are a part of GST.
He added
that the sector is discussing the GST-related issues with the government.
“GST is a
concern... these glitches would be sorted out over a period of time. We found
that the government was very receptive to hearing ideas, so we are discussing
it with them,” said Singh.
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