The matter of the Indian government demanding Rs 10,000 crore GST from 10 foreign airlines is in the headlines. The global airlines organization International Air Transport Association (IATA) has urged the government to resolve this matter. IATA said that if this GST matter is not resolved, it will weaken India’s strong aviation capacity and may also increase the risk. According to Bhasha news, 10 foreign airlines operating in India have been issued show cause notices by the Goods and Services Tax (GST) department for a demand of more than Rs 10,000 crore.
Issuing show cause notice disappointing
According to the news, the International Air Transport Association (IATA) represents more than 330 airlines around the world, including India. Its members account for more than 80 percent of global air traffic. IATA urged the government to resolve the matter and said that despite several representations from the aviation industry, it is disappointing that the Directorate General of GST Intelligence (DGGI) has issued a show cause notice to some foreign airlines operating in India.
This is not done anywhere in the world
Xie Jingquan, IATA’s interim regional vice president for North Asia and Asia-Pacific, said in a statement that DGGI’s claim that GST should be applicable on expenses incurred by the head office of foreign airlines (with branch offices in India) while providing air transport services is flawed. It also does not take into account the nature and agreements involved in the provision of international air transport. Jingquan said that India’s such approach is different and is not done anywhere in the world.
Tax notices sent from October, 2023
Jingquan said that even Indian airlines operating flights outside India do not face such a situation or demand. There are 10 foreign airlines under the DGGI’s investigation and they have been sent tax notices from October 2023. IATA had submitted a detailed report to the Indian government on this matter. Jingquan said that the international nature of air transport requires a clear and consistent policy format at the global level.
also request to help
The International Air Transport Association continues to work closely with the Indian government on this issue. The organization has also urged the government to help resolve the matter urgently, which could undermine and put at risk India’s strong aviation capabilities. Amitabh Khosla, director of IATA’s India unit, said in June that so far 10 foreign airlines have been selected for investigation, which is unprecedented.
Latest Business News
