The Directorate General of GST Intelligence (DGGI) has tightened its grip on ten foreign airline companies operating in India. He is accused of evading GST. In a major action, DGGI has sent summons to all these airlines on Thursday. This action has been taken to prevent leakage of Goods and Services Tax (GST) by foreign airlines.
Asked for detailed explanation for tax evasion
According to the news, DGGI has sought a detailed explanation from the head office of the companies for the alleged tax evasion due to import of services. DGGI is also in talks with all these foreign airlines. According to CNBC-TV18 news, DGGI, the investigation arm under the GST regime, says that the services coming from abroad were liable to GST under the reverse charge system, which has not been paid by these airlines.
These airlines have received summons
The airlines that have received summons include the Indian offices of British Airways, Lufthansa (German Airlines), Singapore Airlines, Etihad Airways, Thai Airways, Qatar Airways, Saudi Arabian Airlines, Emirates, Oman Airlines, Air Arabia. The investigation has been done by DGGI Meerut and Mumbai Zone. All these airlines are under investigation from October 2023. Sources had indicated that the Indian offices of these foreign airlines were not following GST rules.
These airlines are asking for more time
Sources said the Indian offices of British Airways, Lufthansa (German Airlines), Singapore Airlines, Etihad Airways, Thai Airways, Qatar Airways, Saudi Arabian Airlines, Emirates, Oman Airlines and Air Arabia are yet to return to DGGI. They are seeking more time to clarify and respond to the summons. However, tax experts have their own view on this matter. They believe that every penny paid by the Indian branch office will not be subject to tax simply because the money is sent from India.
Latest Business News