IATA continues to seek specific clarifications from the Indian government with regard to the Goods & Services Tax (GST) which came into effect from 1 July 2017.

In September, airline taxation managers from IATA’s India Taxation Working Group called on and met with officials from the Ministry of Finance and the Ministry of Civil Aviation. Detailed representations and draft frequently asked questions were also shared with the Law Committee of the GST Council. Najib Shah, former Chairman, Central Board of Excise & Customs (CBEC), Ministry of Finance also addressed participants of IATA’s Annual Taxation Conference, where he provided an update on airline industry issues under the India GST.

The industry is urging the Indian government to urgently address the issues identified by IATA and airlines. These issues include:

  • Exclusion of airport fees & charges levied on the ticket, from the transaction value for GST purposes.
  • Definitions of ‘continuous journey’ and ‘stopovers’ under the GST law
  • Place of supply rule for instances where service is rendered by a provider other than the service provider charging the revenue (interline/code-shares).
  • GST treatment on fees for ancillary services