Global Airlines Warn Against GST Threat to India's Aviation Growth

The International Air Transport Association (IATA) has urged the Indian government to resolve GST demands worth over Rs 10,000 crore issued to ten foreign carriers. IATA argues these demands could undermine the aviation sector's potential. The association contends that India's approach is unique and inconsistent with global practices.

The International Air Transport Association (IATA) has called upon the Indian government to address GST demands totaling over Rs 10,000 crore placed on ten foreign airlines. According to IATA, these fiscal pressures could significantly hinder India's aviation growth potential.

Representing over 330 airlines and over 80 percent of global air traffic, IATA expressed disappointment over the Directorate General of GST Intelligence's (DGGI) decision to issue show cause notices to the foreign carriers. The organization argues that the GST application on expenses incurred by airline headquarters and their branch offices in India is fundamentally flawed and inconsistent with international air transport norms.

IATA's Regional Vice President for North Asia and Asia Pacific, Xie Xingquan, emphasized that no other country imposes such regulations. The association is pushing for an urgent resolution, stressing the importance of a clear and consistent global policy framework for international air travel.