GST on overseas air tickets violates international norms: IATA Chief
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 concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes, and privatization of airports. The International Airport Transport Association (IATA) is a grouping of more than 280 airlines. Air India and Vistara are also members.
Speaking at a conference in New Delhi, 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 GST rate is 5% and 12% on the economy and business class tickets, respectively. The ICAO, part of the UN, is a global aviation body.
The IATA's Director General and CEO, de Juniac, also said 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 maintained for next 50 months, provided that all nuts and bolts are in place," Civil Aviation Secretary RN Choubey said.