He said input costs should be competitive for any sector and the ministry has been of the strong view that the fuel should be brought under the GST regime.
The matter will be taken up in the next GST council meeting, likely in mid-December
The carriers have also been grappling with high fuel prices and a free fall of the rupee against the dollar.
Apart from custom and excise duty, airlines pay each state a value added tax ranging between 3 to 30 percent on ATF
Use of biofuel as aviation fuel is a proud moment for the country, but we are nowhere close to commercialising it
Civil Aviation Minister Suresh Prabhu had earlier told PTI that the move will help cut the cost as airlines would get input tax credit.
When Goods and Services Tax (GST) was introduced on July 1 last year, five commodities - crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) - were kept out of its purview for the time being.
In an interview to PTI, Finance Secretary Hasmukh Adhia said the call for including the two in GST would be taken up the regime's highest decision making body GST Council.
States such as Telangana and Andhra Pradesh have showed resistance towards bringing in petroleum products under GST as they don’t want to forego a substantial chunk of revenue that comes from petroleum products
"If ATF is brought under the GST regime, we can get input tax credit," he told reporters here, adding that he would meet Revenue Secretary Hashmukh Adhia in this regard.
"Coal has been included and levied with 5 per cent tax but gas is outside GST, how fair is that," he said at the KMPG Energy Summit here.
Speaking at the India Economic Summit of the WEF, he said the sector if given benefits in terms of taxation and cost, there is no reason why India will not emerge as the fastest growing aviation market in the world in the next decade.
The Centre had requested states to reduce the VAT rate on ATF by one per cent, to encourage flight services connecting important cities in the country.
A subsidised 14.2-kg LPG cylinder now costs Rs 487.18 in Delhi as against Rs 479.77 previously, according to Indian Oil Corporation, the nation's largest fuel retailer.
A lower VAT on ATF for small planes is crucial for the success of the government's regional connectivity scheme that aims to make flying affordable for people living in cities with airports that are unserved or under-served
ATF has been subject to an excise duty of 14 percent. On top of the excise duty, state governments impose a value added tax which varies from 4 percent to 30 percent.
Aviation turbine fuel (ATF) price has been cut by over 5 per cent, reversing a two-month rising trend, while rates of subsidised LPG were hiked by Rs 5.57 per cylinder.
Civil Aviation Minister Jayant Sinha said that certain restrictions will be imposed on foreign players and they may not get all the privileges that Indian airlines enjoy.
The tax cut in aviation turbine fuel (ATF) announced by Delhi government for flights in the Regional Connectivity Scheme will help bring down costs, according to SpiceJet Chairman and Managing Director Ajay Singh.
Speaking to CNBC-TV18, Krishnan Balakrishnan, Chief Financial Officer at GoAir, said that rising jet prices were affecting the margins of every airline.
ATF or jet fuel price was hiked by Rs 1,881 per kilolitre (kl), or 3.7 percent, to Rs 48,379.63 per kl in Delhi. The reduction comes after two rounds of hikes, the last one being on November 1 by a steep 7.3 percent.
A subsidised 14.2-kg cylinder will now cost Rs 430.64 in Delhi as against Rs 428.59 previously, according to state-owned oil firms.
"India is a huge market ... Obviously we are a very large player globally in the aviation business, so it makes sense for us to be here," said Sashi Mukundan, regional president and India country head for BP .
A subsidised 14.2-kg cylinder will now cost Rs 425.06 in Delhi as against Rs 423.09 previously, according to state- owned oil firms.