Neutral impactEconomy
Jet Fuel Kept Out Of GST Due To States' Pushback, Aviation Ministry Tells Parliament
NDTV Profit 5 hrs ago·6 Aug 2026, 12:18 pm
The central government has decided to keep aviation turbine fuel (ATF) outside the Goods and Services Tax (GST) regime. This decision comes after several states opposed the proposal to bring ATF under the tax net, arguing that it would disrupt their existing Value Added Tax (VAT) structures. Consequently, the current tax system, which involves both central and state levies, will remain unchanged for now.
This outcome is significant for the aviation sector because ATF is a major cost component for airlines. By maintaining the current tax structure, the government has avoided a potential increase in operational costs for airlines. For investors, this means the sector may avoid immediate financial pressure, but the lack of a unified tax rate could still complicate long-term planning and cost management for airlines operating across different states.
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- Category: Economy.
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