IATA has raised concerns over court orders issued to ten member airlines by India’s tax watchdog for alleged tax evasion related to imported services.
The DGGI issued show cause notices for alleged non-payment of GST worth over INR105bn to airlines including British Airways, Lufthansa Cargo, Oman Air, Emirates, and others.
IATA’s regional vice president criticized the DGGI’s actions, stating that applying GST to expenses incurred by foreign airlines’ headquarters is inconsistent with international practices and could hinder India’s aviation sector growth.
There are fears that international airlines may withdraw from India due to complex tax regulations and double taxation threats, with some airlines reportedly owing significant amounts in unpaid taxes.
According to CNBC, citing unnamed sources, the following airlines have been fined:
- Emirates: INR75.5 / €805.7m
- Etihad Airways: INR16.6bn / €148.7m
- Saudia: INR6.12bn / €54.8m
- Air Arabia: INR4.55bn / €40.6m
- Oman Air: INR710m / €7.5m
- Thai Airways: INR600m / €6.4m
- Qatar Airways: INR530m / €5.6m
- Singapore Airlines: INR400m / €4.3m
- British Airways: INR330m / €3.5m
- Lufthansa Air Cargo: INR100m / €891,500m
