An aircraft operated by IndiGo, a unit of InterGlobe Aviation Ltd., prepares to land at Chhatrapati Shivaji International Airport in Mumbai, India, on Monday. (Photographer: Dhiraj Singh/Bloomberg)

GST On Overseas Air Tickets Violates International Norms, IATA Chief Says

Levying Goods and Services Tax on overseas air tickets violates international norms and also weakens the competitiveness of carriers, said Alexandre de Juniac, chief of International Air Transport Association.

He also flagged various concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes and privatisation of airports. IATA is a grouping of more than 280 airlines. Air India, Jet Airways and Vistara are also members.

Juniac said GST on international air tickets violates International Civil Aviation Organisation norms and also weakens the competitiveness of carriers. The ICAO, part of the U.N., is a global aviation body. The GST rate is 5 percent and 12 percent on economy and business class tickets, respectively.

The IATA's Director General and Chief Executive Officer also said that India's aviation sector is projected to see 500 million trips overall by 2037.