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The government is likely to propose a formula to bring aviation turbine fuel (ATF) under the ambit of Goods and Services Tax (GST), CNBC TV18 reported on February 21.

The likely government proposal will be to allow 18 percent GST in addition  to VAT or excise rate, the news channel learnt from sources, adding that the formula would be introduced only if its acceptable to all the states.

The VAT or excise rate, under the formula, could vary from state to state, the report claimed.

"Globally also, in many countries such a formula of GST rate plus VAT/excise has been used in the case of ATF," a senior government official told CNBC TV18.

The proposal is expected to be tabled before the states and union territories at the next GST Council meeting, the news channel noted.

The Central Board of Indirect Taxes and Customs (CBIC) has "evaluated" the model for ATF's inclusion under GST, the government official claimed, adding, "The GST Council will be appraised with this global best practice model for them to take a final call."

The report comes days after ATF prices soared to record high levels across the country. The rates were increased by 5.2 percent on February 16 in line with a rise in international oil prices.

This is the fourth hike in jet fuel or ATF prices in less than two months following a spike in global oil prices but petrol and diesel prices remained unchanged for a record 103rd day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.

ATF price was hiked by Rs 4,481.63 per kilolitre or 5.2 per cent to Rs 90,519.79 per kl in the national capital, according to a price notification of state-owned fuel retailers. This is the highest ever price touched by ATF.

The rate is higher than Rs 71,028.26 per kl reached in August 2008 when international crude oil prices touched USD 147 per barrel. Brent crude oil on Tuesday was trading at USD 93.87 per barrel.

This is the highest ever price touched by ATF. The increase in price will put pressure on the already strained balance sheets of airlines that are yet to resume full operations due to pandemic-related restrictions.

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Monsoon is expected to be normal, Skymet Weather said in its initial forecast on Monday, adding that a complete assessment would arrive in April.

La Nina, a pattern characterised by unusually low temperatures in the equatorial Pacific Ocean and linked to floods and drought, has fuelled the last two monsoon seasons. 

La Nina does not have a warming influence on global temperatures and is associated with strong monsoon and above average rains, and cool winter in India. But its effect on this monsoon will decline which may not lead to better than average or abundant rainfall, Skymet said. 

IndiGo parent InterGlobe Aviation share price slipped 3.5 percent to Rs 2,044.25 after cofounder and  non-executive non-independent director tendered his resignation from the board on Friday with immediate effect.

In a letter to the board, Rakesh Gangwal said that his "intention is to gradually reduce stake in InterGlobe over the next five plus years".

"I have been a long-term shareholder for more than 15 years and it's only natural to some day think about diversifying one's holdings," Gangwal added in his letter.

Read the full text of Rakesh Gangwal on his resignation from IndiGo board

Earlier this month, InterGlobe reported a surprise profit of Rs 129.79 crore in the December quarter for the first time after posting losses for seven consecutive quarters. The profit was buoyed by higher revenue and yields. 

IndiGo had reported a loss of Rs 621.80 crore in the corresponding quarter of the previous fiscal.

Net revenue increased 89 percent to Rs 9,294.77 crore from Rs 4,909.98 crore a year ago. Passenger ticket revenues came in at Rs 8,073.10 crore, up 98.4%, while ancillary revenue stood at Rs 1141.70 crore, an increase of 41.3% compared to the year-ago quarter.

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At 09:44 hrs InterGlobe Aviation was quoting at Rs 2,059.20, down Rs 61.10 or 2.88 percent on the BSE.

The share touched a 52-week high of Rs 2,379 and a 52-week low of Rs 1,502.90 on 16 November, 2021 and 20 April, 2021, respectively.

Currently, it is trading 13.44 percent below its 52-week high and 37.02 percent above its 52-week low.

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Justin Bieber has a mild case of COVID-19, CNN reported on Sunday citing a representative for the Canadian singer.