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.


Mumbai Airport Launches Winter Schedule 2025 with New Global Routes and Enhanced Passenger Experience

Mumbai Airport Launches Winter Schedule 2025 with New Global Routes and Enhanced Passenger Experience

By Manu Vardhan Kannan

Published on November 8, 2025

Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) has announced its Winter Schedule 2025–26, featuring an expanded network that connects the city to 129 destinations, including 60 international and 69 domestic routes. The schedule, effective from 26 October 2025 to 28 March 2026, marks a significant step in strengthening Mumbai’s position as one of India’s premier global aviation gateways.

The new schedule introduces three new international routes, Copenhagen, Denpasar Bali, and Athens, expanding connectivity for both leisure and business travellers. This development also represents an 18 per cent increase in European operations, supported by new frequencies to London Heathrow, Amsterdam, and Paris, enhancing long-haul accessibility from Mumbai.

With enhanced services across the Asia-Pacific and European sectors, the airport expects a steady rise in daily flight movements and overall passenger traffic during the winter season. Among international airlines, Emirates, Etihad, and British Airways remain the leading operators from CSMIA, while IndiGo, Air India, and Akasa Air dominate domestic operations. Collectively, these airlines will account for nearly 75 per cent of total flight movements throughout the winter schedule.

To ensure a smooth festive travel experience, the airport has expanded several technology-driven facilities such as DigiYatra-enabled e-gates, Self-Baggage Drop (SBD), and Self Check-in kiosks, all aimed at reducing queue times and improving passenger flow during peak travel periods including Christmas, New Year, and school holidays.

With this new schedule, Mumbai International Airport Ltd. (MIAL) reaffirms its commitment to operational excellence, world-class infrastructure, and seamless passenger experiences. The expansion reflects the airport’s continuous effort to connect India’s financial capital with more global destinations while delivering efficient, technology-led travel for millions of passengers each year.


Air India to Resume Delhi–Tel Aviv Flights from January 2026

Air India to Resume Delhi–Tel Aviv Flights from January 2026

By Manu Vardhan Kannan

Published on November 7, 2025

Air India is set to resume its direct service between New Delhi and Tel Aviv from January 1, 2026, operating five weekly flights to boost tourism and strengthen bilateral relations between India and Israel. The initiative, supported by the Israel Ministry of Tourism, marks a key milestone in enhancing connectivity between the two countries.

The route will be operated using Boeing 787 Dreamliner aircraft, cutting travel time to just over five and a half hours through a shorter and secure air corridor over Saudi Arabia. Flights will operate Sunday through Thursday, with departures from Delhi at 7:00 a.m. and arrivals in Tel Aviv at 9:55 a.m. The return service will depart Tel Aviv at 11:40 a.m. and arrive in Delhi at 8:50 p.m., ensuring smooth onward connections to other destinations.

Galit Hoffman, Consul for Tourism Affairs, Israel Ministry of Tourism, India, expressed optimism about the relaunch, stating,

“The return of Air India’s direct flights is a genuine game-changer and a huge win for us. This direct link is our biggest priority to fuel tourism from India, making it easier than ever for Indian travellers to experience the rich culture, history, and vibrant landscapes of Israel.”

The resumed connectivity is expected to further encourage Indian travellers to explore Israel’s diverse attractions, from its historic landmarks and vibrant cities to coastal escapes and wellness destinations.

Additionally, Arkia Airlines, a leading Israeli carrier, has shown interest in reintroducing routes to India, with potential services to Mumbai, Bengaluru, and Goa under consideration. The airline plans to use its Airbus A321neo LR aircraft for these routes.

The revival of Air India’s service, combined with future collaborations from Israeli carriers, reflects the growing tourism potential and cultural exchange between the two nations. Israel anticipates a notable rise in Indian visitor numbers in 2026 and beyond, driven by these strengthened air links.


Delhi Airport Strengthens Global Hub Status with 34% Rise in East–West Transit Passengers

Delhi Airport Strengthens Global Hub Status with 34% Rise in East–West Transit Passengers

By Manu Vardhan Kannan

Published on November 5, 2025

Delhi’s Indira Gandhi International Airport (IGIA), operated by the GMR Aero-led Delhi International Airport Limited (DIAL), has reported an impressive 34% year-on-year increase in international transit traffic, reinforcing its standing as India’s foremost global aviation hub bridging the East and West.

Between September 2024 and August 2025, the airport handled more than 670,000 East–West–East transit passengers, compared to 498,000 during the same period the previous year, according to data from the International Air Transport Association (IATA).

This significant growth has been largely driven by the expanding international networks of Air India and IndiGo. Air India accounted for 67% of total East–West transfer traffic, while IndiGo contributed 25%, together representing over 90% of total international passenger traffic at Delhi Airport.

“Delhi Airport continues to strengthen India’s position on the global aviation map,” said Videh Kumar Jaipuriar, CEO of DIAL. “The sharp rise in East–West passenger flows underscores our growing relevance as a transfer hub connecting Asia and Europe. We remain focused on expanding connectivity, enhancing convenience, and offering greater choice for international travellers.”

Delhi Airport’s role as a major international gateway has been further bolstered by new and expanded routes across Asia and beyond. Air India has increased frequencies to Kuala Lumpur and Denpasar (Bali), while IndiGo has launched new daily flights to Hanoi and Guangzhou, and will commence Delhi–Krabi services in October 2025.

From January 2026, Japan Airlines will begin a daily Delhi–Tokyo Narita service, making Delhi the only Indian airport with connections to both Tokyo Haneda and Narita.

On the western front, Delhi Airport maintains the widest connectivity to the UK, commanding a 38% share of India–UK flights, with direct routes to London Heathrow, Birmingham, and Manchester. Further expanding its long-haul footprint, IndiGo will operate its first Boeing 787-9 Dreamliner on the Delhi–Manchester route, launching on 15 November 2025.

With its strategic location, robust route network, and state-of-the-art facilities, Delhi Airport continues to evolve as South Asia’s premier international transit hub, offering seamless connections and enhanced experiences for travellers journeying between the East and West.

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