Economics · GST and Indirect Taxes
Within the current Indian tax framework, for what specific reason is Aviation Turbine Fuel (ATF) retained under the excise duty regime instead of being subsumed into the Goods and Services Tax (GST)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To manage operational costs within the airline industry✓
- 2To categorize it as a demerit good under Special Excise Duty
- 3To apply the CENVAT credit system for all airline infrastructure
- 4To ensure it remains a primary revenue source for state governments only
Correct answer
To manage operational costs within the airline industry
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