GST on overseas air tickets violates international norms: IATA chief

Last Updated: Tue, Sep 04, 2018 17:30 hrs
GST (PTI image)

According to IATA's Chief Executive Officer, Alexandre de Juniac, levying of GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers.

Currently the GST rate is 5 per cent and 12 per cent on the economy and business class tickets, respectively.

The IATA chief flagged several concerns on the Indian aviation sector at a conference on Tuesday.

Speaking about the Indian aviation sector, he said the high jet fuel prices, cost of infrastructure woes and privatisation of airports were additional challenges.

International Airport Transport Association (IATA) is an association of over 280 airlines, with Indian members such as Air India, Jet Airways and Vistara.

De Juniac also said that India's aviation sector was projected to get 500 million trips "to, from and within" by 2023.

The civil aviation sector recorded 50 months of double-digit growth and it can be "very easily maintain (that) for next 50 months, provided that all nuts and bolts are in place", conceded Civil Aviation Secretary R N Choubey.