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
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?