Centre Considers GST Relief for Infosys, Foreign Shipping, and Airlines Ahead
The Indian government is apparently considering providing GST relief to Infosys, international shipping lines, and foreign airlines.
According to a report by CNBC-TV18, the Indian government is considering granting Goods and Services Tax (GST) relief to Infosys, foreign shipping lines, and foreign airlines. The move is being deliberated as part of the upcoming GST Council meeting scheduled for September 9.
Focus on Service Sector Clarity:
The Centre is evaluating changes to a June circular to clarify the service sector and ease the process of doing business in India.
This follows recent actions by the Directorate General of Goods and Services Tax Intelligence (DGGI), which issued show-cause notices to India’s second-largest IT company, Infosys, and several foreign airlines.
GST Notices to Foreign Airlines:
The DGGI recently issued notices to 10 foreign airlines, including British Airways, Lufthansa, and Emirates, regarding unpaid taxes amounting to ₹10,000 crore. These notices pertained to taxes on the import of services by the Indian branches of these airlines from their head offices.
Upcoming GST Council Meeting:
The 54th Meeting of the GST Council is expected to address several critical issues, including reducing tax slabs, rate rationalization, and removing duty inversion under GST.
Finance Minister Nirmala Sitharaman previously indicated that the Group of Ministers (GoM) on rate rationalization, led by Bihar Deputy Chief Minister Sumant Chaudhary, would present their findings and pending work at this meeting.
