By Admin 
Flight Ticket Price: Those traveling by air may get great relief in the coming days. Some airlines of the country like Air India, Indigo and SpiceJet have demanded the government to bring ATF under the ambit of GST. Airlines say that if this happens then passengers can get cheaper flight tickets. At present, VAT and many other taxes are levied on aviation fuel in different states. This is the reason why the expenses of airlines increase significantly.
What do the airlines want?
FIA, on behalf of Air India, IndiGo and SpiceJet, has written a letter to the Civil Aviation Ministry demanding that ATF should also be brought under the ambit of GST. With this, the tax system will be uniform across the country and airlines will have to bear less tax burden.
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Why did airlines’ expenses increase?
According to FIA, currently airlines are facing many challenges. The operation has become expensive due to the ongoing tension in West Asia, restrictions on airspace of many countries and weakness of the rupee. Airlines say that earlier the share of fuel in the total operating expenses was around 30 to 40 percent, but now it has increased to 55 to 60 percent. In such a situation, it is becoming difficult for companies to manage costs.
What will be the benefit to the passengers?
If the government decides to bring ATF under the ambit of GST, the costs of airlines may reduce. In such a situation, companies can cut ticket fares. However, this decision will completely depend on the government and the final decision on this has not been taken yet.
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What will change?
At present, VAT on aviation fuel i.e. ATF varies depending on the states. If it is brought under the ambit of GST, the tax system will be simpler. Airlines will also be able to take advantage of input tax credit, which may reduce their overall expenses. Airlines have put their demands before the government. Now it remains to be seen what decision the government takes on this. If the demand is met, air travel may become cheaper than before in the future.