GST Council Exempts Foreign Airlines from GST on Import of Services

📅 By Admin | September 10, 2024
📂 Categories: GST Recent News
⏳ 4 Min Read

In a significant decision at its 54th meeting, the GST Council announced that foreign airline companies will now be exempt from GST on the import of services by their establishments in India.

Revenue Secretary Sanjay Malhotra stated, “The Council has decided to exempt the import of services by foreign airlines’ establishments in India.” This decision comes in response to earlier show-cause notices issued by the Directorate General of GST Intelligence (DGGI) to several foreign airlines, demanding over ₹10,000 crores in GST.

The International Air Transport Association (IATA), representing over 330 airlines globally, had previously urged the Indian government to address the GST-related concerns of foreign airlines. The decision also regularizes the past disputes on an “as is and where is” basis, potentially bringing relief to the affected airlines.