States Hesitant to Include Aviation Fuel Under GST

Finance Minister Nirmala Sitharaman announced that states refused to bring aviation turbine fuel under the GST framework, viewing it as part of the crude petroleum basket. The GST Council has delayed decisions on rate rationalization and insurance premium reductions, needing further study and inputs, including those from IRDAI.

In a recent GST Council meeting, Finance Minister Nirmala Sitharaman revealed that states have opposed the inclusion of aviation turbine fuel in the Goods and Services Tax regimen, citing its place within the broader crude petroleum basket.

Additionally, the council took no decision on slashing GST on insurance premiums, as more input, especially from the insurance regulator IRDAI, is necessary.

The GST Council also postponed the decision on rate rationalization, with more analysis needed. However, suggestions were made on revising GST rates for fortified rice kernels and gene therapy.

(With inputs from agencies.)