+
GST Notices to Foreign Airlines May Hamper India's Aviation Growth: IATA
AVIATION & AIRPORTS

GST Notices to Foreign Airlines May Hamper India's Aviation Growth: IATA

The International Air Transport Association (IATA) has expressed concerns that the recent Goods and Services Tax (GST) notices issued to foreign airlines operating in India could hinder the country's robust aviation growth potential. According to IATA, these tax notices may deter foreign carriers from expanding operations in India, thereby affecting the nation's international connectivity and overall aviation sector investments.

India's aviation sector has been on a growth trajectory, driven by increasing passenger traffic and expanding international routes. However, the imposition of GST on foreign airlines for services provided outside India has raised alarms within the industry. IATA argues that this move could lead to increased operational costs for foreign carriers, making India a less attractive market for new routes and expanded services.

The potential reduction in international flights could have broader implications for India's economy, given the aviation sector's significant role in facilitating trade, tourism, and economic development. IATA emphasises the need for a more favourable tax environment to sustain and enhance India's aviation growth.

Furthermore, the aviation body underscores that harmonising tax policies with global standards is crucial for maintaining India's competitiveness in the global aviation market. Ensuring a supportive regulatory framework will be key to attracting foreign investments and fostering long-term growth in the sector.

In response to IATA's concerns, industry stakeholders and policymakers are urged to reassess the GST policies affecting foreign airlines. A balanced approach that considers the operational realities of international carriers and the strategic importance of aviation for India's economic growth is essential for the continued expansion of the country's aviation industry.

The International Air Transport Association (IATA) has expressed concerns that the recent Goods and Services Tax (GST) notices issued to foreign airlines operating in India could hinder the country's robust aviation growth potential. According to IATA, these tax notices may deter foreign carriers from expanding operations in India, thereby affecting the nation's international connectivity and overall aviation sector investments. India's aviation sector has been on a growth trajectory, driven by increasing passenger traffic and expanding international routes. However, the imposition of GST on foreign airlines for services provided outside India has raised alarms within the industry. IATA argues that this move could lead to increased operational costs for foreign carriers, making India a less attractive market for new routes and expanded services. The potential reduction in international flights could have broader implications for India's economy, given the aviation sector's significant role in facilitating trade, tourism, and economic development. IATA emphasises the need for a more favourable tax environment to sustain and enhance India's aviation growth. Furthermore, the aviation body underscores that harmonising tax policies with global standards is crucial for maintaining India's competitiveness in the global aviation market. Ensuring a supportive regulatory framework will be key to attracting foreign investments and fostering long-term growth in the sector. In response to IATA's concerns, industry stakeholders and policymakers are urged to reassess the GST policies affecting foreign airlines. A balanced approach that considers the operational realities of international carriers and the strategic importance of aviation for India's economic growth is essential for the continued expansion of the country's aviation industry.

Next Story
Infrastructure Energy

Tata Power, Suzlon Ink Rs 60 Billion Wind Energy Deal in Andhra

Tata Power has signed an agreement with Suzlon Energy to develop, construct, and supply 700 megawatt (MW) wind turbines in Andhra Pradesh. The Rs 60 billion project forms part of a 7 gigawatt (GW) renewable energy plan announced by Tata Power Renewable Energy (TPREL) and the state government in March 2025.This marks the first wind energy project in the state since 2019. The larger 7 GW programme, covering solar, wind, and hybrid projects with or without storage, is expected to attract investments of around Rs 490 billion, making it one of the state’s largest clean energy commitments.The turb..

Next Story
Infrastructure Transport

Odisha Approves Rs 12.6 Billion For 32 New Bridges

Odisha is set for a major infrastructure boost with the approval of 32 new bridges under the Setu Bandhan Yojana for FY 2025–26. The project, valued at Rs 12.6 billion, is aimed at improving road connectivity across ten districts, enhancing mobility and driving local development.The bridges will be constructed in Bolangir, Subarnapur, Nayagarh, Sambalpur, Malkangiri, Bargarh, Koraput, Jagatsinghpur, Cuttack, and Puri. Many of these areas are rural or located in difficult terrains, where improved accessibility will greatly benefit the transportation of goods and public mobility.Setu Bandhan Y..

Next Story
Infrastructure Transport

UP Plans Rs 350 Billion Gorakhpur–Shamli Expressway

Uttar Pradesh is preparing to build its largest expressway, a 700-km six-lane project that will surpass the 570-km Ganga Expressway from Meerut to Prayagraj. Designed as a greenfield project, the Gorakhpur–Shamli Expressway will cut travel time between eastern and western Uttar Pradesh to just six hours, transforming regional connectivity.The expressway will pass through 22 districts and 37 tehsils, bringing faster travel and significant economic benefits, including higher land values for farmers and employment opportunities during and after construction. A drone survey to map the route is e..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?