Wrong to impose GST on international air tickets, says IATA

Global airlines’ body IATA has strongly opposed levying of GST on international air tickets, dubbing the taxation as “wrong” as it contravenes many global agreements to which India is a party.

The International Air Transport Association (IATA) represents more than 280 airlines in different parts of the world. Its members include Air India, Jet Airways and Vistara.

“It is wrong to apply GST to international tickets. It contravenes international agreements to which India is party,” IATA Director General and CEO Alexandre de Juniac told PTI in an interview.

“That’s why we are asking the government to zero-rate international tickets,” he said when asked about his views on the implementation of Goods and Services Tax (GST) in India.

Under the GST regime, tax at the rate of 5 per cent and 12 per cent is levied on economy and business class air tickets, respectively.

According to de Juniac, GST was not the only issue when it comes to taxation in the aviation sector.

“We are engaging with the government to resolve the tax-on-tax treatment of passenger fees and charges, as well as on invoicing and compliance matters,” he said.

When asked about the response from the government, the IATA chief said, “We are making progress. I am cautiously optimistic for a good result. The sooner the better”.
RA