Aviation Minister Ashok Gajapathi Raju has sent a proposal to the
Finance Ministry on service tax according to government sources. These
sources told ET Now that he wants service tax on tickets to be sub-12%
in Goods and Services Tax (GST). He has also proposed that ATF should be
kept under GST, the sources said. ” With ATF out of GST, Aviation
Minister fears that ticket prices will rise under GST. The Finance
Minister is unlikely to consider ATF demand, since petroleum is out of
GST,” the sources added.
Currently, the Centre and states levy taxes on ATF including excise duty and value added tax. A service tax of 6 per cent is levied by airlines for economy air travel and 9 per cent for non-economy air travel.
Ticketing systems under the proposed GST regime will also need to be realigned as every journey across states or countries will be treated as a separate journey and GST will be levied at the point of embarkation. This is in variance with the present tax arrangement where a return journey is treated as one journey irrespective of stopovers. Also, if the point of embarkation for a return journey is outside India, then it does not attract service tax.
To Read the News in Full 03/02/17 Financial Express
Currently, the Centre and states levy taxes on ATF including excise duty and value added tax. A service tax of 6 per cent is levied by airlines for economy air travel and 9 per cent for non-economy air travel.
Ticketing systems under the proposed GST regime will also need to be realigned as every journey across states or countries will be treated as a separate journey and GST will be levied at the point of embarkation. This is in variance with the present tax arrangement where a return journey is treated as one journey irrespective of stopovers. Also, if the point of embarkation for a return journey is outside India, then it does not attract service tax.
To Read the News in Full 03/02/17 Financial Express
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