Aviation Sector Fully Prepared for GST Takeoff, Says Minister Jayant Sinha
Aviation Minister Jayant Sinha has said the sector is ready for the tax reform and that the implementation issues have been resolved.
File photo of Union Civil Aviation Minister Jayant Sinha. (Image: PTI)
New Delhi: Aviation Minister Jayant Sinha has said the sector is ready for the tax reform and that the implementation issues have been resolved.
“We have had a series of meetings with all the stake holders regarding implementation issues related to GST,” Sinha told CNBCTV18 in an interview. “By and large I think they have been resolved.”
The Goods and Services Tax, the biggest overhaul of the taxation system since Independence, is set to be unveiled at midnight today. It will roll up as many as 17 indirect taxes into a single, multi-tiered levy, increasing compliance and business efficiency and promoting transparency in business transactions.
There have been concerns from businesses about switching over to the new system. Sinha said that stake holders in the aviation sector had some issues regarding the definition of ‘stopover’ and ‘continuous journey’. There were also rate related issues.
Since there are four rates under which all goods and services will be taxed, there has been some confusion about what tax rate will be levied on which item. These issues “Pertain to exactly how rates will be applied and there we are looking at things like the movement of stock, like spare parts and so on across the country,” Sinha said.
The other issue that has vexed companies is the input tax credit, or the refund that tax assesses will get from the government. Under the current VAT system there is no refund. But under GST companies will be eligible for a partial refund provided they’ve done all their paperwork. “We are looking at input tax credit for import leases so that we understand exactly how tax is going to be applied in the GST framework for these expenses,” he told CNBCTV18.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.
|Power Grid Corp||211.15||2.92|
Recommended For You
- Labuschagne Replaces Smith to Become First Like-for-like Substitution in Cricket
- Sanjay Kapoor Trolls Malaika Arora on New 'Saturday Blues' Instagram Post
- Joe Jonas Celebrates James Bond Themed Birthday with Priyanka Chopra, Nick Jonas and Sophie
- Instead of Putting Unsold Stuff in a Garbage Dump, Amazon Will Donate it Instead
- Airtel Forgot About The Home Bundle And Reliance Jio Fiber Has Stolen The March