As per the recent reports, it was expected to exempt Goods and Service tax ( GST ) on foreign airline services. The exemption may be brought on the supply of services between the head offices and local entities of foreign airline operators from the goods and services tax ( GST ).
Recently, foreign airlines having offices in India have been issued GST notifications for failing to pay taxes on services imported by Indian entities from their headquarters, according to reports.
The issue has been brought before the fitment committee within the GST Council, and it may be recommended to grant tax exemption and provide relief to airlines.
Last year, notices were sent by the Directorate General of GST Intelligence ( DGGI ) to 12 foreign airlines regarding the imposition of GST on services imported by Indian branch offices.
Foreign airlines have informed the government that the service location encompasses both head and branch offices. They said airlines should only be responsible for taxes applicable within India. After the summoning of airline management by the DGGI, it was instructed by its officials to refrain from any coercive actions.
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