Why are foreign airlines threatening to leave India?

Foreign airlines are threatening to leave India. The Chief of the international Air Transport Association (IATA) has warned that if india does not resolve the tax issue, foreign airlines may leave the indian market.

In fact, in the last few months, the offices of many big foreign airlines have received tax evasion notices from the Directorate General of GST Intelligence (DGGI). These companies include the names of some big companies like qatar Airways, british Airways, Lufthansa Singapore Airlines. These notices are related to not paying tax on the services provided by these companies to their indian offices.

Responding to a question at the IATA Annual General Meeting in Dubai, director General Willie Walsh said, "Due to all these things, it is possible that these airlines leave India. Due to low profits, these companies will gradually reduce the number of flights and then finally stop their business from india completely."

Understand what the whole controversy is?

DGGI sent notices to foreign airlines because they did not pay tax on many services. Foreign airlines are facing problems because DGGI has been keeping an eye on them since october 2023. This government department is formed to prevent tax evasion and they say that the indian offices of foreign airlines are not paying GST on many services taken from their main company. These services include maintenance of aircraft, payment to crew members, oil and rental of aircraft lease.

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