SpiceJet pitches for bringing ATF under GST

By: |
New Delhi | October 04, 2017 11:06 PM

Bringing aviation fuel under the GST ambit can help in reducing costs by up to 15 per cent, according to SpiceJet chief Ajay Singh.

spicejet, aviation sector, GSTA leading budget carrier, SpiceJet operates on an average 384 daily flights.

Bringing aviation fuel under the GST ambit can help in reducing costs by up to 15 per cent, according to SpiceJet chief Ajay Singh.

Aviation turbine fuel (ATF) accounts for a significant chunk of an airline’s operational costs which also has an impact on air ticket prices.

Currently, ATF is not under the Goods and Services (GST) ambit and the levy on it is different in various states.

Singh, who is the Chairman and Managing Director of SpiceJet, today said there has to be a long-term solution for the ATF issue.

He was responding to a query about the recent rise in ATF prices.

“We have requested the government and the GST Council to bring ATF under the ambit of the GST,” he said here.

Singh said that such a move would help bring down costs by around 10-15 per cent.

A leading budget carrier, SpiceJet operates on an average 384 daily flights.

About the impact of GST on the domestic airline industry, Singh said there are some glitches which the airlines are trying to get resolved.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, 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.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Q4 results: Larsen & Toubro profit rises 11% to Rs 3,820 crore in March quarter
2Quarterly Results: Cipla net profit surges 73% to Rs 412 crore in Q4 on robust sales
35G in India: New report suggests 40 million users can take up 5G within first year of service rollout