In its 54th meeting, the Goods and Services Tax (GST) Council announced an exemption for foreign airline companies from GST on the import of services by their establishments in India.
“Another important decision was taken to exempt the import of services by an establishment of a foreign airline company,” said Revenue Secretary Sanjay Malhotra during a briefing on the outcomes of the 54th GST Council Meeting. “There were some notices, which were also reported in the media earlier. The Council also recommended regularising the past period on an 'as is and where is' basis,” he added.
Earlier this year, the Directorate General of GST Intelligence (DGGI) issued show cause notices to 10 foreign airlines, with GST demands exceeding Rs 10,000 crores.
The International Air Transport Association (IATA), which represents over 330 airlines and accounts for more than 80% of global air traffic, had called on the Indian government to resolve the ongoing Goods and Services Tax dispute. IATA had also expressed disappointment with the DGGI for issuing these notices despite multiple industry representations, according to a PTI report in August 2024.
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