GST Council set to deliberate on relief and challenges for various sectors
The 54th GST Council meeting is likely to be on September 9 in New Delhi, with a packed agenda that promises both relief and challenges for various industries, according to CNBC-TV18 sources. A key issue likely to be addressed is relief for foreign airlines operating in India through branch offices.
Sources indicate that the GST Council's fitment committee is expected to recommend exempting the import of services by a foreign airline's head office abroad when received via no consideration. This proposal could also regularise past demands on as is basis, providing much-needed relief to the sector.
The Directorate General of GST Intelligence (DGGI, or the top GST anti-evasion authority) recently issued show-cause notices to 10 foreign airlines, claiming 18% GST on services received by their head offices abroad, totaling Rs.10,500 crore.
The airlines affected include Emirates (Rs.7,550 crore), Etihad Airways (Rs.1,660 crore), and Saudi Arabia Airlines (Rs.612 crore) Oman Airlines (Rs.71 crore), Thai Airways (Rs.60 crore), Qatar Airways (Rs.53 crore), Singapore Airlines (Rs.40 crore), British Airways (Rs.33 crore) and Lufthansa Air Cargo (Rs.10 crore).
