Foreign Airlines Exempt from GST on Services to Branch Offices, New Rules Effective from October 10

Foreign Airlines Exempt from GST on Services to Branch Offices, New Rules Effective from October 10

By Nishang Narayan

Published on October 13, 2024

Foreign airlines operating in India will no longer be liable to pay Goods and Services Tax (GST) on services provided by their head offices to branch offices in the country, as per a government notification issued by the Central Board of Indirect Taxes & Customs (CBIC). This decision, part of the recommendations made at the 54th GST Council meeting, will take effect starting October 10.

The exemption is subject to the condition that foreign airlines secure a certificate from the civil aviation ministry, confirming that their operations in India fall under the scope of a bilateral air services agreement. This move is expected to ease the tax burden on foreign airlines and streamline operations.

In addition to this, academic institutions that have received grants for research purposes will also be exempt from GST, further promoting research and development activities across the country.

The CBIC has rolled out several new GST-related updates, including measures aimed at reducing penalties for taxpayers. Individuals or businesses that comply by March 31, 2025, will be eligible for waivers on penalties and interest. This is particularly applicable to taxpayers facing demand orders under section 74(1) of the GST Act, as long as they have not filed an appeal.

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The GST Council has also introduced a special rectification window for taxpayers to amend past input tax credit (ITC) discrepancies. This opportunity is designed to help taxpayers correct genuine mistakes made in the past, potentially resolving many pending litigations and reducing the burden on both taxpayers and the government.

Additionally, the Travel Agents Association of India (TAAI) has raised concerns over the excessive GST charges on air ticket cancellations and modifications. The association revealed that GST was incorrectly charged at 18% instead of the appropriate rates of 5% for economy class and 12% for business class, leading to an over-collection of taxes. They have urged airlines and relevant ministries to refund the excess GST that was wrongly collected.

Experts believe that the latest measures are a step towards encouraging voluntary compliance while resolving disputes outside the court system. By offering taxpayers a chance to correct their errors and reduce penalties, the government aims to streamline tax compliance and promote a more efficient system.

This series of notifications, especially the rectification of ITC mistakes, is expected to significantly reduce taxpayer grievances and litigation, creating a more taxpayer-friendly environment moving forward.


Akasa Air Expands Chennai–Abu Dhabi Connectivity with 6x Weekly Service

Akasa Air Expands Chennai–Abu Dhabi Connectivity with 6x Weekly Service

By Manu Vardhan Kannan

Published on September 6, 2025

Akasa Air has strengthened its international operations by inaugrated its direct flight from Chennai to Abu Dhabi route with 6x weekly services. The flights, which began on 1st September, are now operating with enhanced frequency to meet growing travel demand.

This new route not only improves connectivity between Chennai and Abu Dhabi but also offers travellers the airline’s signature service at affordable fares. The route functions as a turnaround flight, with inbound and outbound operations at Abu Dhabi International Airport and a ground time of just two hours, ensuring efficiency and convenience.

This inaugral service reflects Akasa Air’s focus on expanding its global footprint and supporting seamless travel between India and the UAE. By offering more flight options, the airline continues to cater to both business and leisure travellers while reinforcing its reputation for reliability and customer-friendly service.


Air India Express Launches Direct Flights from Ahmedabad and Chandigarh to Bengaluru

Air India Express Launches Direct Flights from Ahmedabad and Chandigarh to Bengaluru

By Manu Vardhan Kannan

Published on September 4, 2025

Air India Express, India’s first international value carrier, has commenced direct operations from Ahmedabad and Chandigarh to Bengaluru, further strengthening its domestic network. Services from Dehradun to Bengaluru are also set to begin on 15 September.

The airline will now operate twice daily from Chandigarh to Bengaluru and increase Ahmedabad–Bengaluru flights to twice daily from 16 September. These routes expand Bengaluru’s role as the carrier’s largest domestic hub, offering wider connectivity for both leisure and business travellers across India and select international destinations.

The inaugural flight from Chandigarh, operated by a new Boeing aircraft featuring a livery inspired by Punjab’s traditional Phulkari textile, departed at 16:40 and arrived in Bengaluru at 19:40. Earlier in the day, the first Ahmedabad–Bengaluru service took off at 11:00. To mark the occasion, a commemorative event was held at Chandigarh Airport, where the first guest was presented with a special boarding pass.

Aloke Singh, Managing Director, Air India Express, said: “Our new routes from Ahmedabad, Chandigarh, and soon Dehradun to Bengaluru reflect our commitment to creating meaningful connections between state capitals and major metros. With thoughtfully curated fares including our cabin-bag only Xpress Lite fare, comfortable seats, hot meals onboard, and our unique ‘Tales of India’ aircraft liveries, we deliver a warm, distinctly Indian travel experience with every flight. This expansion is another step towards building our pan-India network serving leisure and business travellers with efficiency.”

The new flights also expand one-stop connections through Bengaluru. From Ahmedabad, travellers gain access to 26 domestic destinations and three international points, while passengers from Chandigarh can connect to 22 domestic destinations and Kathmandu. Bengaluru continues to remain the largest domestic hub for Air India Express, handling more than 405 weekly flights to 34 domestic destinations and three international cities.

The airline’s Tales of India initiative continues to celebrate India’s artistic heritage, with over 50 unique aircraft tail designs. Additionally, travellers booking on these routes can access “Xpress Holidays,” the airline’s platform offering curated travel packages with flights, accommodation, transport, and activities.

With these additions, Air India Express strengthens its network strategy of enhancing point-to-point travel while also supporting wider connectivity through its Bengaluru hub.


Emirates Celebrates 25 Years of Operations in Chennai

Emirates Celebrates 25 Years of Operations in Chennai

By Manu Vardhan Kannan

Published on September 3, 2025

Emirates, the world’s largest international airline, has completed 25 years of operations in Chennai, a key hub in its South India network. Since launching its first flight on 1 September 2000, the airline has carried more than 10.7 million passengers on over 38,000 flights between Dubai and Chennai.

The milestone celebration was joined by Chief Minister of Tamil Nadu, M.K. Stalin, while Chennai International Airport commemorated the occasion with a water cannon salute for the arrival of EK544.

Mohammad SarhanVice President, Emirates – India and Nepal, said, “We are delighted to celebrate 25 years of service to Chennai and connecting its people to our global network. We would like to thank M.K Stalin, Chief Minister of Tamil Nadu, for joining us in our celebration, marking an important partnership that has grown from strength to strength over the years. The unwavering support of the authorities and all local stakeholders has been invaluable to the success of our operations and we extend our sincere gratitude on the occasion.”

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Over the past two and a half decades, Emirates has enhanced Chennai’s global connectivity by providing access to its network across six continents. The airline has enabled businesses to expand into new markets and supported demand from business travellers, leisure passengers, and the visiting friends and relatives segment. Popular destinations for passengers from Chennai include New York, San Francisco, Chicago, Washington D.C., Dallas, Boston, Seattle, Paris, London, Manchester, and Frankfurt.

Emirates also carries significant inbound traffic into Chennai, particularly from Kuwait and North America. On the cargo front, Emirates SkyCargo has played a vital role in trade, transporting high-value and time-sensitive commodities such as fresh produce, pharmaceuticals, electronics, and engineering goods. In the last financial year alone, it uplifted 19,300 tonnes of cargo from Chennai, creating export opportunities for local farmers, manufacturers, and businesses.

Travellers continue to experience Emirates’ signature Fly Better service, featuring fully enclosed First Class suites, direct aisle access in Business Class, and award-winning inflight entertainment with over 6,500 channels. The airline also offers regionally inspired cuisine, including vegan options, paired with curated wine and beverage selections.

As Emirates celebrates 25 years in Chennai, it reaffirmed its commitment to strengthening global connectivity, supporting industries, and contributing to the city’s role as a vital gateway for South India.

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