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        Case ID :

        GST on overseas air tickets violates intl norms: IATA chief

        September 4, 2018

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        New Delhi, Sep 4 (PTI) Levying GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers, IATA chief Alexandre de Juniac said Tuesday.

        He also flagged various concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes and privatisation of airports.

        The International Airport Transport Association (IATA) is a grouping of more than 280 airlines. Air India, Jet Airways and Vistara are also members.

        Speaking at a conference here, de Juniac said goods and services tax (GST) on international air tickets violates International Civil Aviation Organization (ICAO) norms and also weakens the competitiveness of carriers.

        The ICAO, part of the UN, is a global aviation body.

        The GST rate is 5 per cent and 12 per cent on economy and business class tickets, respectively.

        The IATA's Director General and CEO also said that India's aviation sector is projected to see 500 million trips "to, from and within" by 2037.

        India's civil aviation sector has recorded 50 months of double-digit growth and it can be "very easily maintain (that) for next 50 months, provided that all nuts and bolts are in place", Civil Aviation Secretary R N Choubey said.

        GST on international air tickets undermines carrier competitiveness and conflicts with international aviation norms, raising policy concerns Levying GST on international air tickets is presented as conflicting with international civil aviation norms and as diminishing airline competitiveness. The commentary emphasizes that imposing GST on tickets for overseas travel departs from established international practice and has adverse competitive effects for carriers. It also identifies related sectoral pressures-jet fuel costs, infrastructure shortcomings, and airport privatisation-that bear on the ability to sustain projected growth in air travel.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                GST on international air tickets undermines carrier competitiveness and conflicts with international aviation norms, raising policy concerns

                                Levying GST on international air tickets is presented as conflicting with international civil aviation norms and as diminishing airline competitiveness. The commentary emphasizes that imposing GST on tickets for overseas travel departs from established international practice and has adverse competitive effects for carriers. It also identifies related sectoral pressures-jet fuel costs, infrastructure shortcomings, and airport privatisation-that bear on the ability to sustain projected growth in air travel.





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