The 55th Goods and Services Tax (GST) Council meeting, set to take place on December 21 in Jaisalmer, will focus on several key issues.
Among the topics up for discussion are the disbanding of the Group of Ministers (GoM) on revenue analysis and a potential three-month extension for the GoM on compensation cess.
The 55th GST Council meeting is set to address a critical proposal for the aviation sector: bringing aviation turbine fuel (ATF) under the GST regime, as per CNBC-TV18 sources.
Currently, ATF attracts:
- 11% central excise duty, with a concessional 2% under the Regional Connectivity Scheme (RCS).
- VAT at varying rates across states, which differs based on local taxation policies.
The council will deliberate on whether to include ATF under GST or retain the status quo. A decision to integrate ATF under GST could simplify the complex tax structure for the aviation sector, potentially reducing costs and fostering growth.
