Civil aviation ministry
seeks deferment of GST implementation
The civil aviation ministry has sought postponement of the GST
implementation by two months on the ground that airlines need more time to
revamp their systems to comply with the new tax regime.
The goods and services tax (GST) is scheduled to be
rolled out from July 1 and preparations are at an advanced stage. Against this
backdrop, the ministry has written to the finance ministry seeking deferral of
the GST implementation by two months.
According to a senior ministry official, the
deferment has been sought as airlines are not yet ready with their systems to
be in compliance with GST. Carriers, including Air India, have expressed
concern over certain aspects of GST.
Airline officials said making changes in the global
ticket distribution system to ensure compliance with GST would take time. Lack
of clarity on certain areas pertaining to airlines business has also given rise
to concerns of higher operational cost.
Among others, airlines are in a fix over the
possibility of movement of "stocks (equipment or aircraft parts)"
being taxed under GST.
On Wednesday, Minister of State for Civil Aviation
Jayant Sinha chaired a meeting on GST preparedness with various aviation
industry stakeholders, including airlines, airports and cargo.
Earlier this week, the finance ministry said GST is
on track for scheduled implementation from July 1 and pushed back against
rumours of a delay.
"The rumours about GST implementation being
delayed are false. Please do not be misled by it," Revenue Secretary
Hasmukh Adhia had said.
***********
After minister seeks GST deferment,
MoS Sinha says ready for new tax
“We are prepared for GST
from July 1,” Minister of State for Civil Aviation Jayant Sinha said today even
as the ministry has sought deferment of the new tax regime.
The minister also
emphasised that preparedness for implementation of the Goods and Services Tax
(GST) has been discussed with all aviation stakeholders and that “concerns were
satisfactorily addressed”.
The GST is scheduled to
be rolled out from July 1 and preparations are at an advanced stage.
However, the ministry recently had written to the Finance Ministry seeking
deferral of GST implementation by two months.
The deferment has been
sought as airlines are not yet ready with their systems to be in compliance
with GST, according to a senior Civil Aviation Ministry official.
Against this backdrop,
Sinha today tweeted about the GST preparedness.
“Discussed preparedness
with all aviation stakeholders; concerns were satisfactorily addressed. We are
prepared for GST from 1st July,” Sinha said.
Airlines, including Air
India, had expressed concern over certain aspects of GST.
Airline officials said
making changes in the global ticket distribution system to ensure compliance
with GST would take time. Lack of clarity on certain areas pertaining to
airlines business has also given rise to concerns of higher operational cost.
Among others, airlines
are in a fix over the possibility of movement of “stocks (equipment or aircraft
parts)” being taxed under GST.
Sinha on Wednesday had
chaired a meeting on GST preparedness with various aviation industry
stakeholders, including airlines and airports.
Earlier this week, the
Finance Ministry said GST is on track for scheduled implementation from July 1
and pushed back against rumours of a delay.
“The rumours about GST
implementation being delayed are false. Please do not be misled by it,” Revenue
Secretary Hasmukh Adhia had said.
**********
From Sources:-
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