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.


IndiGo Focuses on Operational Stability, Plans Select Route Expansion

IndiGo Focuses on Operational Stability, Plans Select Route Expansion

By Hariharan U

Published on January 3, 2026

IndiGo has outlined a cautious yet forward-looking approach as it prepares for the next phase of growth, placing strong emphasis on “operational reliability” while planning a limited set of international route additions. The airline said its immediate focus is to “stabilise operations” as it continues to strengthen capacity and network resilience.

As part of its international plans, IndiGo has announced the launch of non-stop services to Athens. This route will also mark the international debut of India’s first Airbus A321XLR, a new aircraft type expected to support the airline’s entry into fresh overseas markets as it gradually expands beyond short-haul operations.

Beyond Athens, the airline has not shared details of additional international destinations or capacity increases. IndiGo stated that it will continue to grow its international footprint while further densifying its domestic network, without outlining the pace or scale of expansion.

On the domestic front, the airline is also preparing to begin operations from Noida International Airport at Jewar, strengthening its presence in the National Capital Region once services commence.

Addressing recent operational challenges, IndiGo said it had swiftly restored normal operations following a temporary network disruption. The airline also confirmed that it is “fully collaborating and providing requested information to the regulator's committee” as part of an ongoing review by the Directorate General of Civil Aviation.

While IndiGo reiterated its long-term ambitions, including plans related to widebody aircraft and sustained growth, its near-term outlook remains measured. The airline said its renewed focus on stability will help drive future scale, innovation, and impact as it carefully explores new frontiers.


Navi Mumbai Airport Sees 26,000+ Passengers in First Five Days

Navi Mumbai Airport Sees 26,000+ Passengers in First Five Days

By Hariharan U

Published on January 1, 2026

Navi Mumbai International Airport (NMIA) has made an impressive start, handling a total of 26,021 passengers in its first five days of operations. This includes 12,431 arrivals and 13,590 departures, showing strong demand right from day one.

Weekend traffic was particularly high, with 5,548 travellers on Saturday and 5,614 on Sunday, reflecting growing confidence among passengers. During this initial period, the airport managed 162 flight movements, 81 arrivals and 81 departures, while keeping on-time performance smooth for both airlines and ground services.

Currently, NMIA connects 13 major domestic destinations, including Ahmedabad, Bengaluru, Chennai, Cochin, Coimbatore, Delhi, Goa (MOPA), Hyderabad, Jaipur, Lucknow, Mangalore, Nagpur, Vadodara. These connections cover key business and leisure hubs, giving travellers more options and conveand nience in the Mumbai Metropolitan Region.

Looking ahead, the airport plans to expand its network with additional destinations and increased flight frequencies in coordination with partner airlines. With strong early passenger response and ready infrastructure, NMIA is set to become a modern, seamless travel hub in Western India


Air India Expands Partnership with airBaltic to Offer Seamless Connectivity to Latvia

Air India Expands Partnership with airBaltic to Offer Seamless Connectivity to Latvia

By Hariharan U

Published on January 1, 2026

Air India has strengthened its partnership with airBaltic, the flag carrier of Latvia, by entering into a new codeshare agreement, making travel between India and the Baltic region easier and more seamless for its customers. This move builds on the interline partnership established between the two carriers in June 2025.

Under the codeshare, Air India has begun adding its ‘AI’ designator code on airBaltic-operated flights between Riga and Air India’s European gateways including Amsterdam, Paris, Frankfurt, Copenhagen, Milan Malpensa, Vienna, Zurich, and London Gatwick. This allows passengers to travel between India and Riga with a single Air India ticket, covering connecting flights under the same booking.

Additionally, Air India’s interline agreement with airBaltic allows travellers to reach Tallinn, Estonia, and Vilnius, Lithuania via select European gateways, further expanding access to the Baltic region.

Nipun Aggarwal, Chief Commercial Officer, Air India, said, "This expanded partnership with airBaltic reflects Air India’s commitment to providing seamless global connectivity to our customers. Latvia and the wider Baltic region are growing travel markets, and this codeshare makes the journey more convenient than ever."

Air India currently operates multiple non-stop flights connecting India with Europe:

  • Delhi: Amsterdam (7x weekly), Paris (14x weekly), Frankfurt (12x weekly), Copenhagen (4x weekly), Milan (6x weekly), Vienna (4x weekly), Zurich (4x weekly)

  • Mumbai: Frankfurt (5x weekly)

  • Amritsar & Ahmedabad: London Gatwick (3x weekly each)

Since its privatization in 2022, Air India has expanded its global alliance network to include 24 codeshare partnerships and nearly 100 interline agreements, offering passengers access to over 800 destinations worldwide.

The new codeshare flights are now available for booking through both airlines’ official channels and travel partners.

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