IATA is disappointed that India’s Directorate General of GST Intelligence (DGGI) has proceeded to issue Show Cause Notices to some foreign airlines operating to India, despite a number of representations made by the industry on this matter.
DGGI’s assertion that GST should apply to expenses incurred by the headquarters of foreign airlines (with a branch office in India) in the course of providing air transport services is flawed. It does not take into consideration the nature and conventions involved in the provision of international air transport. Furthermore India is alone in its approach – nowhere else around the world is this practiced. Indian carriers operating to destinations outside India do not face similar situations or demands. The international nature of air transport necessitates a clear and consistent policy framework globally.
IATA continues to work closely with the Government of India on this subject. IATA has also urged the Government to urgently help resolve this matter, which can dampen and risk India’s strong aviation potential.
