The 54th GST Council has granted exemption to foreign airlines, but other sectors facing tax notices on import of services are seeking clarity from the government. The Directorate General of Goods and Services Tax Intelligence (DGGI) had sent notices to Infosys, foreign shipping companies, and foreign airlines for unpaid taxes. The Revenue Secretary referred to a circular dated June 26, 2024, which provides clarity on related-party transactions, but there are still some unresolved issues, and further clarifications may be issued as needed.
Source A2ztaxcorp
