Efforts to bring ATF, natural gas under GST by year-end, says PMO advisor
Tarun Kapoor, Advisor to the Prime Minister's Office (PMO), has stated that the government is working to bring aviation turbine fuel (ATF) and natural gas under the Goods and Services Tax (GST) regime within this financial year.
Speaking to CNBC-TV18, Kapoor confirmed that discussions are underway to implement this shift, which has been a long-standing demand from various sectors, especially aviation and energy.
Currently, ATF and natural gas fall outside the GST regime and are subject to state-level taxes, including excise duty and value-added tax (VAT). These taxes vary across states, significantly increasing operational costs for industries such as airlines, which have long sought uniformity in taxation. For instance, ATF can attract VAT rates as high as 30% in some states.
The inclusion of ATF and natural gas under GST would simplify the tax structure and potentially reduce the overall burden on these sectors.
