New Delhi: After the GST Council Meeting on Saturday, June 22, 2024, flight tickets to foreign destinations may turn cheaper, since Council is likely to consider a proposal to relax the tax imposed on services offered by foreign airlines in India. Foreign airlines with operations in India have faced GST notices regarding unpaid taxes on imported services by Indian entities. If the GST Council grants tax relief on specific services provided by these airlines, it could lead to lower flight ticket prices for passengers.
The GST Council is likely to consider exempting taxes on services such as:
Aircraft lease rentals
Maintenance
Crew salaries
The Indian arms of foreign airlines are taxed on maintenance, repair, and operations (MRO) services provided by their parent company’s headquarters, according to Moneycontrol. These services are typically provided by the headquarters of the foreign airline. Taxes on these services have an effect on the ticket price. A reduction in taxes on these services or a relaxation may being down your air ticket price for foreign travel significantly.
Indian arms of foreign air carriers were slapped with an 18 per cent GST demand notice for procuring MRO operations from their parent company’s headquarters abroad. GST Council may consider easing this taxation as part of the government’s push for ease of doing business.
GST Council Meeting Today: What will cost more, what will turn cheaper
The GST Council Meeting on June 22, 2024, will be chaired by Union Finance Minister Nirmala Sitharaman with state finance ministers attending as members. This is the 53rd GST Council Meeting, the first since the new government came to power. The previous government’s last GST Council Meeting took place on October 7, 2023. During this meeting, key decisions taken included a 28 per cent tax on online gaming, casinos, and horse racing.
Key focus areas for Saturday’s GST Council Meeting include:
Amnesty to Settle Tax Disputes
Retrospective taxation on online gaming
GST on chemicals and fertilisers
GST on petrol and diesel
GST Council Meeting Today: Major relief may be on the cards for Indian travellers since the GST Council may consider easing tax on services provided by foreign airlines in India. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
