Airlines require specific GST clarifications: IATA

The International Air Transport Association (IATA) on Thursday said that clarification on specific issues with respect to the application of the Goods and Services Tax (GST) will help the airline industry keep up with international standards and principles.

"Nonetheless there are still information gaps. We look forward to receiving the guidance notes to be provided by the GST Council, which will clarify various airline specific issues, such as the taxation treatment of continuous journeys, and other pressing matters," Amitabh Khosla, Country Director - India, IATA, said in a statement.

"On the air-cargo side, we believe that the levying of GST on cargo export services by air contradicts standard GST principles as well as the treatment of such services under the Service Tax regime. Clarification would help align this with international standards and principles."

According to IATA, it has supported airlines with GST compliance-related activities in the lead-up to implementation on July 1, 2017.