The Centre is reportedly considering GST relief for Infosys, foreign shipping lines, and foreign airlines. The potential changes, which may be discussed in the upcoming GST Council meeting on September 9, are part of broader efforts to provide clarity and ease of doing business in the service sector, according to a CNBC-TV18 report
The Directorate General of Goods and Services Tax Intelligence (DGGI) recently issued notices to Infosys, India's second-largest IT company, as well as to several foreign airlines. 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. BT could not independently verify the report about the potential GST relief.
Earlier, DGGI had also sent show-cause notices to 10 foreign airlines, including British Airways, Lufthansa, and Emirates, over ₹10,000 crore in unpaid taxes. The issue stems from taxes on services imported by Indian branches from their foreign headquarters.
Meanwhile, the reconstituted Group of Ministers (GoM) on GST rate rationalisation held its first meeting on Thursday. West Bengal Finance Minister Chandrima Bhattacharya stated that she has requested 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.
Sources from the GoM told ANI that this was the first meeting of 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 54th Meeting of the GST Council is expected to address these matters, along with other issues such as tax slab reductions and rate rationalization.