The government is likely to propose a formula to bring aviation turbine fuel (ATF) under Goods and Services Tax (GST) regime at the next GST Council meeting, CNBC TV18 has reported.
The likely government proposal will be to allow 18 percent GST in addition to VAT or excise rate and could vary from state to state. The proposal is expected to be tabled before the states and union territories and would be introduced only if its acceptable to all the states, the report claimed.
Further, the Central Board of Indirect Taxes and Customs (CBIC) has evaluated the model for ATF’s inclusion under GST. The GST Council will be appraised with this global best practice model for them to take a final call, as per the government official.
The report comes days after ATF prices recorded at high levels across the country. The rates were increased by 5.2 percent on 16th February in line with a rise in international oil prices.
While, this is the fourth hike in ATF prices in less than two months following a spike in global oil prices but petrol and diesel prices remained unchanged for a record 103rd day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.
Knowledge Source :
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