IATA Raises GST Concerns for Foreign Airlines in India

Global airlines' association, IATA, has voiced concerns over recent GST show cause notices issued to some foreign airlines operating in India. IATA argues that these actions could disrupt India's promising aviation sector, urging the government to address the issue swiftly to maintain industry stability.

Global airlines' association IATA has expressed serious concerns regarding recent show cause notices related to Goods and Services Tax (GST) issued to several foreign airlines operating in India. IATA believes these notices could significantly undermine India's growing aviation sector.

In a statement, IATA highlighted its disappointment with the Directorate General of GST Intelligence (DGGI) for proceeding with these notices despite multiple representations from the industry. According to Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia Pacific, the GST should not apply to expenses incurred by the headquarters of foreign airlines in their international operations.

Xingquan also pointed out that India's stance on this issue is unique, noting that no other country follows such practices. IATA has urged the Indian government to resolve the matter urgently, emphasizing that a clear and consistent global policy framework is crucial for international air transport.