Domestic Airfares To Get Pricey As GST To Impact Operation Costs Heavily

Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
For Daily Alerts

    The already struggling airline industry with the implementation of GST is confronting issues on the cost front and it is expected that flyers will have to dole out additional money in the near term towards fare cost.

    Domestic Airfares To Get Pricey As GST To Impact Operation Costs Heavily

    The new charges under GST have the potential to make the saddled industry sick and can drain its profitability. As per the senior official, GST would cause an additional burden of a whopping Rs. 4750 crore. So, to overcome the problem, the industry is making a call for relief under the new indirect tax regime.

    With the implementation of GST, airlines will have to pay GST on re-import of aircraft engine and other parts sent for service to foreign nations. Also more custom levies are further adding to the problem of airlines. GST is also charged upon transfer of aircraft components between states, also import of aircraft parts attracts an IGST of 28% and other charges.

    Conversely, unless the demand of the aviation industry is met, it is expected to hugely impact passenger growth over the next twelve months. Also, like other fuels, industry is also demanding that air turbine fuel should also become the part of GST regime.

    Story first published: Monday, September 25, 2017, 12:23 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more