We are prepared for GST from July 1: Civil Aviation MoS Sinha

“We are prepared for GST from July 1,” Minister of State for Civil Aviation Jayant Sinha said on Friday even as the ministry has sought deferment of the new tax regime.

The minister also emphasised that preparedness for implementation of the Goods and Services Tax (GST) has been discussed with all aviation stakeholders and that “concerns were satisfactorily addressed”.

The GST is scheduled to be rolled out from July 1 and preparations are at an advanced stage.
However, the ministry recently had written to the Finance Ministry seeking deferral of GST implementation by two months.

The deferment has been sought as airlines are not yet ready with their systems to be in compliance with GST, according to a senior Civil Aviation Ministry official.

Against this backdrop, Sinha on Friday tweeted about the GST preparedness. “Discussed preparedness with all aviation stakeholders; concerns were satisfactorily addressed. We are prepared for GST from July 1,” Sinha said.

Airlines, including Air India, had expressed concern over certain aspects of GST. Airline officials said making changes in the global ticket distribution system to ensure compliance with GST would take time. Lack of clarity on certain areas pertaining to airlines business has also given rise to concerns of higher operational cost.

Among others, airlines are in a fix over the possibility of movement of “stocks (equipment or aircraft parts)” being taxed under GST.

Sinha on Wednesday had chaired a meeting on GST preparedness with various aviation industry stakeholders, including airlines and airports.