CBIC notifies GST Exemption for Import of Service by Branch Office of Foreign Airlines Company [Read Circular]
The council had also recommended to regularise the past period on ‘as is where is’ basis
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The Central Board of Indirect Taxes and Customs ( CBIC ) has notified exemption of Import of Service by Branch Office of Foreign Airlines Company from the ambit of Goods and Services Tax. The Goods and Services Tax Council, in its 54th Meeting, had recommended exemption on Import of service by branch Office - To exempt import of services by an establishment of a foreign airlines company...
The Central Board of Indirect Taxes and Customs ( CBIC ) has notified exemption of Import of Service by Branch Office of Foreign Airlines Company from the ambit of Goods and Services Tax.
The Goods and Services Tax Council, in its 54th Meeting, had recommended exemption on Import of service by branch Office - To exempt import of services by an establishment of a foreign airlines company from a related person or any of its establishments outside India, when made without consideration.
Complete Draft Replies of GST ITC Related Notices, Click Here
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Notification Overview
The official notification, numbered 08/2024 - Integrated Tax (Rate), was issued on October 8, 2024. It brings into effect an amendment to the previous notification ( No. 9/2017-Integrated Tax (Rate) ) from June 2017. According to the updated notification, a new entry ( 10L ) has been introduced to the exemption table under Chapter 99, covering services imported by foreign airline companies.
Read More: Key Recommendations Made In The 54th GST Council Meeting Held On 09.09.2024
The exemption is applicable to Import of services by an establishment of a foreign airline company from a related entity outside India, when the service is provided without any consideration, with the condition that GST will still apply on the transportation of goods and passengers as applicable. Additionally, the Ministry of Civil Aviation must certify that the establishment in India is of a foreign airline designated under a bilateral air services agreement with India.
Complete Draft Replies of GST ITC Related Notices, Click Here
In addition, the board also notified a reduced 5% Goods and Services Tax ( GST ) on the transport of passengers by helicopters operating on a seat-share basis. The notification no. 07/2024-Central Tax (Rate) dated 8th October 2024 was issued. It shall come into force on 10th October 2024.
This notification followed the recommendations of the GST Council’s 54th meeting held on September 9, 2024, where it was recommended that the new GST rate be implemented alongside the regularisation of past GST dues on an ‘as is where is’ basis.
Read Also: CBIC notifies 5% GST on Helicopter Passenger Transport on Seat-Share Basis, Regularizes Past Dues
To Read the full text of the Order CLICK HERE
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