Niti Aayog on Thursday asked the government to allow input tax credit for aviation infrastructure under GST.
The GST does not provide credit for input taxes on aviation infrastructure at present.
“This credit could help reduce airport costs and encourage infrastructure development,” the Niti Aayog’s three-year Action Agenda released by Finance Minister Arun Jaitley, said.
The suggestion comes at a time when the authorities are mulling increasing the passenger service fee (PSF) levied on air travellers as the government was finding it increasingly difficult to manage the escalating cost of airport security.
Currently, Rs 800 crore is due to the CISF by the airports operators for providing security to the airports.
The Aayog in its agenda also demanded improvement in service delivery at airports and collection of data on improvement in customer satisfaction indices on a regular basis.
Jaitley said, “We do not have too many decisions in pipeline today which are stopped or obstructed because it is not comfortable to take that decision or its politically not being possible to take that decision”.
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