GST Exemption for Foreign Airlines on Service Imports: No Consideration Required, Subject to Reciprocal Taxation and Certification

Chapter 99 outlines the exemption from GST for import of services by an establishment of a foreign airline company in India from a related person or its other establishments outside India, provided no consideration is involved. Conditions include the payment of GST on goods and passenger transport by the foreign airline's Indian establishment and certification by the Ministry of Civil Aviation that the airline is designated under a bilateral air services agreement. Additionally, there should be a reciprocal tax exemption for Indian airlines by the foreign government. This exemption was clarified and inserted by specific notifications and circulars in 2024 and 2025.