Ministry of Finance, in collaboration with the Ministry of Civil Aviation (MoCA), has issued an update regarding the GST exemption for services imported by foreign airline companies. As per the recommendations from the 54th GST Council meeting (September 2024), the exemption applies to services provided by related establishments of foreign airlines when made without consideration. However, the exemption is conditional upon certain criteria: GST must be paid by the foreign airline establishment in India on applicable transport services, and MoCA must certify the airline’s designation under a bilateral air services agreement with India. Additionally, MoCA is required to confirm that designated Indian airlines are not subject to similar taxes in the foreign country. MoCA has provided a list of designated airlines operating under the Winter 2024-25 schedule and shared comments from Indian carriers like Air India, IndiGo, and Akasa Air. The O.M. and relevant annexures have been uploaded to the CBIC website for further reference by the field formations.
F. No. 190341/12/2025-TRU
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi
Dated the 31.01.2025
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: 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- reg.
The undersigned is directed to refer to O.M. dated 20.01.2025 (copy enclosed) from Ministry of Civil Aviation (MoCA) providing information in respect of Gazette notification No. 08/2024 – Integrated Tax (Rate) dated 08.10.2024 notified by Department of Revenue.
2. It may be recalled that based on recommendations of the 54th GST Council meeting held on 09.09.2024 import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration was exempted subject to following conditions:
- Provided that GST at applicable rates is paid by the establishment of the foreign airline company in India on transport of goods and passengers as may be applicable;
- Provided that Ministry of Civil Aviation certifies that the establishment of the foreign company in India is that of an airline company which has been designated by the foreign government under the applicable bilateral air services agreement with India;
- Provided further that, Ministry of Civil Aviation certifies that on a reciprocal basis, designated Indian airlines are not subject to levy of similar taxes by whatever name called for the same services appearing under the entry, by the Government of the country designating the foreign airline company.
3. The second and third conditions, reproduced above relate to MoCA. With respect to second condition MoCA has provided a list of designated foreign airlines that are currently operating from India as per ongoing Winter 2024-25 schedule [Annexure I of the O.M].
3.1 With respect to third condition, MoCA has informed that the matter was discussed with Indian carriers operating international services and comments received from the Indian carriers namely, Air India, IndiGo and Akasa Air have also been shared [Annexure II to the O.M.].
4. The O.M. received from MoCA along with the relevant Annexures is being placed on the CBIC website for information of the field formations.
Encl: As above
Yours faithfully,
Smita Roy
Technical officer TRU-II
