GS Paper - 3 (Economy)

The Centre will move the issue of bringing aviation turbine fuel (ATF) under the GST net for discussion in the next meeting of the GST Council, finance minister Nirmala Sitharaman said on 6 February 2022, while noting that rising global fuel prices are a "concern".

What

  1. The GST was introduced on 1 July 2017, amalgamating over a dozen central and state levies, five commodities of crude oil, natural gas, petrol, diesel and ATF were kept out of its purview given the revenue dependence of the central and state governments on this sector.
  2. Currently, the central government levies excise duty on ATF while state governments charge VAT.
  3. These taxes, with excise duty, in particular, have been raised periodically with rising oil prices.
  4. Of course just not for the airline but the global price of fuel is now a concern for all of us, more so for airlines which have not seen a complete head-up post the pandemic, FM said.