Aviation: IATA hits out at India, says GST on international air tickets wrong

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.   

Aviation: IATA hits out at India, says GST on international air tickets wrong
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. Image source: Reuters
By PTI
Updated: Tue, Jul 17, 2018
10:16 am
PTI
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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.

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