GST on overseas air tickets violates international norms, says IATA Chief

By: | Published: September 4, 2018 11:37 AM

Levying GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers, IATA chief Alexandre de Juniac said Tuesday.

Air India, Jet Airways and Vistara are also members of International Airport Transport Association (IATA). (Image: Reuters)

Levying GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers, IATA chief Alexandre de Juniac said Tuesday. He also flagged various concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes and privatisation of airports. The International Airport Transport Association (IATA) is a grouping of more than 280 airlines. Air India, Jet Airways and Vistara are also members.

Speaking at a conference here, de Juniac said goods and services tax (GST) on international air tickets violates International Civil Aviation Organization (ICAO) norms and also weakens the competitiveness of carriers. The ICAO, part of the UN, is a global aviation body. The GST rate is 5 per cent and 12 per cent on economy and business class tickets, respectively.

The IATA’s Director General and CEO also said that India’s aviation sector is projected to see 500 million trips “to, from and within” by 2037. India’s civil aviation sector has recorded 50 months of double-digit growth and it can be “very easily maintain (that) for next 50 months, provided that all nuts and bolts are in place”, Civil Aviation Secretary R N Choubey said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition