The government is expected to propose a formula to bring ATF under GST.

According to CNBC TV18 on February 21, the government is set to propose a formula to bring aviation turbine fuel (ATF) under the Goods and Services Tax (GST).

According to insiders, the government’s likely proposal will be to enable 18 percent GST in addition to VAT or excise rate, with the formula being implemented only if it is agreeable to all states.

According to the research, the VAT or excise rate could differ from state to state under the algorithm.

“ATF has been calculated using a formula of GST rate + VAT/excise in various nations,” a senior government official told CNBC TV18.

According to the news station, the idea will be presented to the states and union territories at the next GST Council meeting.

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According to the government official, the Central Board of Indirect Taxes and Customs (CBIC) has “examined” the concept for ATF inclusion under GST, and “the GST Council would be appraised with this worldwide best practise model for them to take a final call.”

The news came just days after ATF prices hit new highs across the country. On February 16, the rates were raised by 5.2 percent in response to a surge in international oil costs.

Following an increase in global oil prices, this is the fourth raise in jet fuel or ATF prices in less than two months, although petrol and diesel prices have remained steady for a record 103rd day, coinciding with electioneering in areas such as Uttar Pradesh and Punjab.

Crypto assets are subject to a tax in the budget.

According to a price statement from state-owned gasoline dealers, the price of ATF was raised by Rs 4,481.63 per kilolitre, or 5.2 percent, to Rs 90,519.79 per kilolitre in the national capital. This is the highest price at which ATF has ever traded.

The tariff is higher than the previous peak of Rs 71,028.26 per kilo in August 2008, when international crude oil prices hit USD 147 per barrel. Brent crude oil was selling at USD 93.87 per barrel on Tuesday.

This is the highest price at which ATF has ever traded. The price hike will put additional burden on airline financial sheets that have yet to restart full operations owing to pandemic-related constraints.