Taxation · GST Exclusion and Excise Taxation
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)?
- 1To ensure it remains a primary revenue source for state governments only
- 2To apply the CENVAT credit system for all airline infrastructure
- 3To categorize it as a demerit good under Special Excise Duty
- 4To manage operational costs within the airline industry✓
Correct answer
To manage operational costs within the airline industry
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