The Civil Aviation Ministry has asked the Finance Ministry to put off the implementation of the Goods and Services Tax by two months, PTI reported on Thursday. It sought more time to arrange the airlines’ systems according to the new tax regime. Several airlines, including Air India, have raised concerns over some details of GST.
The decision was reportedly taken after Minister of State for Civil Aviation Jayant Sinha held a meeting on Wednesday with aviation industry stakeholders, including airlines, airports and cargo. “Although some airlines demanded eight to nine months to switch to the new GST regime, we have asked the finance ministry to postpone the rollout till September 1 at least,” an official told The Hindu, adding that the letter was sent on Monday.
The aviation ministry in the letter said it would take time to ensure that the global ticket distribution system was in accordance with the GST. Concerns have also been raised on taxation principles under which non-stop international flights will become more expensive than the stopover ones, The Hindu reported. “GST on international travel should apply on the furthest break point from the origin,” the official told the English daily.
Earlier this week, Revenue Secretary Hasmukh Adhia had categorically said that the rollout of GST scheduled for July 1 will not be delayed. “The rumours about GST implementation being delayed are false. Please do not be misled by it,” Adhia had tweeted.