GST notices to foreign airlines may dampen India's aviation potential: IATA

Global airlines' grouping IATA on Tuesday raised concerns over show cause notices issued to some foreign airlines operating to India with respect to Goods and Services Tax (GST), saying the issue can dampen and risk the country's strong aviation potential.

Urging the government to resolve the matter, the International Air Transport Association (IATA) said it is disappointed that the 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.

IATA represents more than 330 airlines, including Indian carriers, and its members account for more than 80 per cent of the global air traffic.

"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 ...