India Slaps Tax Notice on Emirates, Lufthansa, and 10 Other Foreign Airlines

The Directorate General of Goods and Services Tax Intelligence (DGGI) has issued show-cause notices to ten foreign airlines, including British Airways, Lufthansa, and Emirates, for allegedly failing to pay a total of Rs 10,000 crore in taxes.

According to the report, by Economic Times these notices were dispatched over the past three days and address claims of unpaid taxes related to the import of services by the Indian branches of these airlines from their head offices.

The tax demands stem from an investigation into whether these airlines have correctly fulfilled their tax obligations on exempt and non-exempt services.

Among the notable airlines receiving these notices are Emirates, Lufthansa, British Airways, Singapore Airlines, and Oman Air. The show-cause notices pertain to unpaid dues on services imported into India by the airlines’ Indian branches from their global headquarters.

The investigation was triggered by a broader audit involving a total GST demand of Rs 32,000 crore, which was cited in a circular issued by Infosys. The DGGI clarified that the airlines were deemed ineligible for certain tax exemptions under the circular due to the nature of their services.

Additionally, several foreign airlines, including Lufthansa, Emirates, and British Airways, reportedly declined to provide detailed data requested by GST authorities. They claimed they did not maintain such granular records.

The DGGI, which is the primary intelligence and investigative agency for issues related to Goods & Services Tax (GST), Central Excise Duty, and Service Tax, plays a crucial role in ensuring compliance with indirect tax laws in India.