India

Postpone GST rollout to Sep 1: Aviation ministry

Air-India-wefornews

New Delhi, June 15, 2017: The Civil Aviation Ministry has asked the Finance Ministry to postpone the rollout of the Goods and Services Tax (GST) from 1 July to 1 September by saying that airlines need time to amend ticketing rules.

We have asked the Finance Ministry to give further time for implementation of GST, expressing the airlines’ view that effecting a change in the global ticketing system would require time,” said a senior Aviation Ministry official, on condition of anonymity.

The Ministry told the Finance Ministry that full-service airlines, Jet Airways and Air India, rely on global distribution systems (GDS) software for booking tickets through travel agents and it would require key changes in the system to include GST.

“Although some airlines demanded eight-nine months to switch to the new GST regime, we have asked the Finance Ministry to postpone the rollout till September 1 at least,” the Aviation Ministry official said, adding that the letter was written by the Ministry to Revenue Secretary Hasmukh Adhia on Monday.

 Wefornews Bureau

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