Civil aviation ministry seeks postponement of GST implementation

Airline officials said making changes in the global ticket distribution system to ensure compliance with GST would take time. Lack of clarity on certain areas pertaining to airlines business has also given rise to concerns of higher operational cost.

By: PTI | New Delhi | Updated: June 15, 2017 2:28 pm
GST, civil aviation, gst on flight fares, gst delayed, Jayant Sinha GST is scheduled to be rolled out from July 1 .

The civil aviation ministry has sought postponement of the GST implementation by two months on the ground that airlines need more time to revamp their systems to comply with the new tax regime. The goods and services tax (GST) is scheduled to be rolled out from July 1 and preparations are at an advanced stage.

Against this backdrop, the ministry has written to the finance ministry seeking deferral of the GST implementation by two months. According to a senior ministry official, the deferment has been sought as airlines are not yet ready with their systems to be in compliance with GST.

Carriers, including Air India, have expressed concern over certain aspects of GST. Airline officials said making changes in the global ticket distribution system to ensure compliance with GST would take time. Lack of clarity on certain areas pertaining to airlines business has also given rise to concerns of higher operational cost. Among others, airlines are in a fix over the possibility of movement of “stocks (equipment or aircraft parts)” being taxed under GST.

On Wednesday, Minister of State for Civil Aviation Jayant Sinha chaired a meeting on GST preparedness with various aviation industry stakeholders, including airlines, airports and cargo.

Earlier this week, the finance ministry said GST is on track for scheduled implementation from July 1 and pushed back against rumours of a delay. “The rumours about GST implementation being delayed are false. Please do not be misled by it,” Revenue Secretary Hasmukh Adhia had said.

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  1. S
    s s nair
    Jun 15, 2017 at 8:56 pm
    Is the ministry headed by anti national.
    Reply
  2. M
    Makes Sense
    Jun 15, 2017 at 7:06 pm
    If airlines are not ready, impose forming fine on them. We are never on time.
    Reply
  3. R
    RJ
    Jun 15, 2017 at 4:12 pm
    What freaking losers! They knew this was coming for years and still have no clue. Now is a good time to sell off Air India.
    Reply
  4. A
    ASHOK KUMAR
    Jun 15, 2017 at 3:38 pm
    Modi is out at zero before start of the match........
    Reply