![Government may offer GST relaxation to foreign airlines, shipping lines, and Infosys Government may offer GST relaxation to foreign airlines, shipping lines, and Infosys](https://varindia.com/public/storage/news/2024/08/gb6aAIuUfzDPIW1rJSjcuBKoB7lgp1MriJMzUpz7.jpg)
At the September 9 GST Council meeting, the government is anticipated to review and possibly relax the provisions outlined in the June circular. Major stakeholders that may receive this relief include Infosys and foreign airlines and shipping lines, as per report.
Notices have been issued to Infosys and several foreign airlines by the Directorate General of Goods and Services Tax Intelligence (DGGI) and these notices concern unpaid taxes on the import of services by Indian branches from their head offices.
The government is reportedly looking into amending a June circular to address these issues.
Earlier, DGGI had also sent show-cause notices to 10 foreign airlines, including British Airways, Lufthansa, and Emirates, over Rs 10,000 crore in unpaid taxes. The issue stems from taxes on services imported by Indian branches from their foreign headquarters.
On Thursday, a meeting was held by the reconstituted Group of Ministers (GoM) on GST rate rationalization. Finance Minister of West Bengal, Chandrima Bhattacharya said that she has urged for a reduction in the 18% GST rate on life and health insurance premiums. “I have placed the request of reducing GST on life and health insurance. I have been told that the fitment committee is looking into it,” she said.
Karnataka Revenue Minister Krishna Byre Gowda added, “We have discussed the issue of relaxation in GST rates on insurance; we have asked for more data on it.” However, he noted that no member of the rate rationalisation committee is currently in favor of changing or reducing the number of existing GST slabs. “Why disturb something which is going on smoothly?” he remarked.
As per news source, this was the first meeting organized by the reconstituted panel and no decisions have yet been made regarding the reduction of slabs, cutting GST rates on various items, or lowering the GST rate on life and health insurance premiums.
The reconstituted GoM, formed in June 2024 after the new central and state governments took office, is also considering proposals for reducing GST rates in sectors such as insurance, hospitality, beverages, and online gaming. Bihar Deputy Chief Minister Samrat Chaudhary has been appointed as the convenor of the GoM, with other members including finance ministers from Uttar Pradesh, Goa, Rajasthan, West Bengal, Karnataka, and Kerala.
The GST Council’s 54th meeting may address these matters along with other issues such as tax slab reductions and rate rationalization.
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