When do you see the aviation turbine fuel coming under GST in India?

The government has indicated that the GST Council may propose a very detailed formula to bring aviation turbine fuel (ATF) under the ambit of GST. In fact, this shift could happen as early as the next meeting of the GST Council, slated for next month. The GST Council is apparently planning to allow 18% GST but the states will be allowed to levy VAT over and above that. It remains to be seen how this impacts the overall cost of ATF.

This would still be subject to the approval and concurrence of various states. VAT rates change from one state to another. There are enough global precedents for such a formula working in the case of ATF. Recently, there was a strident demand by airlines, airline bodies and even Ministry of Civil Aviation to put ATF under GST. Amidst rising crude prices, this move was supposed to provide relief to the already beleaguered airlines. Most airlines are facing a sharp plunge in passenger load factors (PLF) in last few quarters.