ATF likely to come under GST: Hardeep Puri

Petroleum and natural gas minister hints at balanced rate of taxation

geetanjali

Geetanjali Minhas | January 25, 2025 | Mumbai


#taxation   #energy   #Aviation   #GST  
(File photo)
(File photo)

Aviation turbine fuel (ATF) is likely to be brought under the Goods and Services Tax (GST) in the near future, petroleum and natural gas minister Hardeep Singh Puri has said, signalling a potential change in aviation fuel taxation.
 

Speaking to the press in Mumbai on Friday ahead of India Energy Week 2025, Puri explained that the GST Council, which includes the union finance minister and state finance ministers, was actively considering bringing ATF under the GST regime.

“I am the line ministry. Taxation issues come from the finance ministry and GST Council. If  you ask me when, I would say sooner than later. Our sense out of the last GST meeting was that ATF is likely to come on soon,” he said.

Puri noted that several states, such as Gujarat, Maharashtra, and Andhra Pradesh, which previously expressed concerns, are now seeing the potential benefits of this shift.

Drawing from his experience as civil aviation minister earlier, Puri recalled that states were charging varied levels of GST ranging from 1% to 20% charged by some states. He added that he pursued with the chief ministers to charge lower VAT rates to get increased revenues as air fares being dynamic and flights being able to land anywhere, they would rather fuel in states where VAT rates was lower .

Currently, ATF attracts 11 percent central excise duty, with a concessional 2 % for regional connectivity scheme routes and varies in VAT rates across different States. ATF manufacturers cannot avail input tax credits on GST which gets built into the final cost. “If you bring something under GST, you will not lose. In fact, it will be a win-win for you,” said the oil minister.

Petroleum products including petrol and diesel  are not yet part of the GST framework. Efforts to include these products have faced opposition from several states over the years.

Puri also said that adding that bringing natural gas under GST is also under consideration.

Addressing other energy-related topics he said there is the abundant energy supply coming from countries like Brazil, Argentina, Suriname, Guyana, Canada, and the US inspite of cut back from some producers. He added that the government will continue to support loss making LPG marketing companies.
 

Comments

 

Other News

MoEFCC and CAQM launch ‘The Breath of Change’

To tackle air pollution in Delhi-NCR through public participation and creative engagement, the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Commission for Air Quality Management (CAQM) have jointly launched a strategic communication campaign titled The Breath of Change.

India well on way to becoming a global IP powerhouse

Intellectual Property (IP) has evolved into a critical component of innovation and global competitiveness in India’s economy. As businesses pivot toward intangible assets like data, algorithms and branding, IP protection is no longer a matter of formality—it is a strategic imperative. The last

War and Peace: The conundrum of conflict in West Asia

Israel and Palestine have been the harbinger of troubles for the last 80-odd years. It is an unending and persistent saga of conflict and attrition which has bloodied the political, societal and economic turf in West Asia for long. The scale of wars, which were more than skirmishes of the day, ranged from

Trump’s tariff ploy sparks resistance from Global South

In the history of BRICS, never has any joint statement issued after a leader-level summit contained any remarks—directly or indirectly, against the US. However, for the first time, during the 17th summit of BRICS in Rio de Janeiro in Brazil, leaders voiced their concern about America’s impositi

How India can become a $30 tn economy by 2047: A blueprint

Viksit Bharat: India @2047  By Aditya Pittie Fingerprint Publishing This timely and meticulously

The saga of a language family that has shaped the world

Proto: How One Ancient Language Went Global By Laura Spinney Distributed in India by HarperCollins India, 352 pages, Rs 599

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter