IATA Warns India’s Aviation Growth at Risk Due to Misaligned GST Notices
The International Air Transport Association (IATA) expressed concern over the recent Goods and Services Tax (GST) notices issued by India's Directorate General of GST Intelligence (DGGI) to some foreign airlines. He mentions there was a targeting in the notices for expenditure by the headquarters of foreign carriers, which is perceived as harmful to the Indian aviation growth plan.
IATA indicates that this is not in line with international norms and practices; more so, such demands are not made on Indian carriers when they fly overseas. According to the association, such activities will hold the growth of the aviation industry in India, which acts as the lifeline to the overall economic growth of the country.
Xingquan, IATA Regional Vice-President for North Asia and Asia Pacific, condemned the stand taken by the DGGI. He said that in this context, the application of GST fails to recognise the special nature of international air transport. He called for a globally consistent policy framework to support the international character of air travel, which would mitigate risks to India’s aviation sector.
With over 330 airlines as its membership, IATA has been lobbying the Indian government to resolve the matter fast, warning that if this problem is not resolved soon, it will undermine the country’s aviation potential.
