ATF likely to come under GST: Hardeep Puri -Governance Now

ATF likely to come under GST: Hardeep Puri

Petroleum and natural gas minister hints at balanced rate of taxation

Geetanjali Minhas | January 25, 2025 | Mumbai

#taxation #energy #Aviation #GST

(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

Gandhian movement after Gandhi failed: Ram Guha

The Gandhian movement in India, after Gandhi’s death, failed, says Ramachandra Guha, and blames Vinoba Bhave for it. But the movement found new, fertile grounds around the world and succeeded in bringing about a change in South Africa, the US and elsewhere. It is high time it returned home. Of cour

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Cabinet approves setting up of Integrated Transport & Logistics Authority

The union cabinet, chaired by prime minister Narendra Modi, on Tuesday approved the setting up of a Special Purpose Vehicle (SPV), called Integrated Transport & Logistics Authority (ITLA), to strengthen research, planning, appraisal, monitoring and impact assessment within the broad domains of Transp

Why foundational literacy and numeracy is key to school education

Foundational Literacy and Numeracy (FLN) are often described as the building blocks of education. Yet, their significance goes well beyond a child’s ability to read a sentence, write a response or solve a basic mathematical problem. These foundational skills shape how children understand the world,

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli