Information received from Ministry of Civil Aviation (MoCA) with respect to Gazette notification No. 08/2024 - Integrated Tax (Rate) dated 08.10.2024 notified by Department of Revenue

Exemption for import of services by foreign airlines conditioned on designation certification and reciprocity, with GST payable on transport services.

Exemption for import of services by a foreign airline establishment from a related person without consideration is conditional: GST must be paid on transport of goods and passengers; the establishment must be certified as a designated carrier under bilateral air services agreements; and certification must confirm reciprocal absence of equivalent taxation on designated Indian carriers. A list of designated foreign airlines and comments from Indian carriers have been provided and the material is posted for field formation guidance.