GST Council Rejects Aviation Fuel Tax Proposal

During the recent GST Council meeting, Deputy Chief Minister Mallu Bhatti Vikramarka opposed bringing Aviation Turbine Fuel (ATF) under the GST, emphasizing the state's limited revenue sources. The central government confirmed that states rejected the inclusion of ATF in the GST regime to avoid revenue losses, maintaining the current state taxation system. Finance Minister Nirmala Sitharaman noted that states are uncomfortable with any changes as they view ATF as part of the broader crude petroleum category. The council also introduced an 18% GST on sales of used vehicles by registered sellers while keeping peer-to-peer transactions exempt. Additionally, discussions on reducing taxes on life and health insurance premiums were postponed for further deliberation. These decisions reflect ongoing tensions between state revenue autonomy and proposed national tax reforms.