The Central Board of Indirect Taxes has revised the norms for maintaining the record for aircraft operations with immediate effect. This makes it obligatory for every aircraft operator to transfer passenger data 24 hours before departure time and at wheels-off time.
Previously the aircraft operators could transfer data either within 24 hours of departure or at the wheels-off time (when the aircraft is assigned to take off).
The updated amendment removes the same flexibility, obligating that operations furnish the passenger information at both intervals.
The officers cited that the updated rule has been drawn under the cases of underpayment of Goods and services tax (GST) by the airlines on cancelled tickets.
There is a 5% GST on economy class flight tickets and 12% GST on business class tickets. Businesses can claim ITC on flight tickets if the travel is for businesses and a GST-compliant invoice is to be furnished.
It was discovered by DGGI that distinct airlines were collecting the GST on last-minute cancellations but were not depositing the same with the exchequer.
Input Tax Credit (ITC) was been claimed by distinct airlines on these cancelled tickets.
