SpiceJet pitches for bringing ATF under GST

Aviation turbine fuel (ATF) accounts for a significant chunk of an airline's operational costs which also has an impact on air ticket prices.

PTI| Last Updated: Oct 04, 2017, 21:28 PM IST

Guwahati: Bringing aviation fuel under the GST ambit can help in reducing costs by up to 15 percent, according to SpiceJet chief Ajay Singh.

Aviation turbine fuel (ATF) accounts for a significant chunk of an airline's operational costs which also has an impact on air ticket prices.

Currently, ATF is not under the Goods and Services (GST) ambit and the levy on it is different in various states.

Singh, who is the Chairman and Managing Director of SpiceJet, on Wednesday said there has to be a long-term solution for the ATF issue.

He was responding to a query about the recent rise in ATF prices.

"We have requested the government and the GST Council to bring ATF under the ambit of the GST," he said here.

Singh said that such a move would help bring down costs by around 10-15 percent.

A leading budget carrier, SpiceJet operates on an average 384 daily flights.

About the impact of GST on the domestic airline industry, Singh said there are some glitches which the airlines are trying to get resolved.