Foreign Airlines Exempt Filing Form GSTR 9C Reconciliation Statement

The Central Board of Indirect Tax and Customs (CBIC) announced in an official notification stating that all the foreign airlines working in the country will be exempt from filing the Reconciliation Statement & Certification in form GSTR 9C to Central Goods and Services Tax Rules, 2017.

Under section Section 44(2) of Goods and Services Tax (GST) Act, every taxpayer having an annual turnover of more than INR 2 Crores per annum is required to file a reconciliation statement in form GSTR-9C Get the easy guide to GSTR 9C along with complete online return filing process. GSTR 9C is a GST audit form for taxpayers having turnover more than 2 crores. Read more, but with the announcement made by the board, the foreign airlines listed under Section 381(1) of the Companies Act 2013 are exempt from filing the reconciliation statement. Section 381(1) states that the companies should prepare a P&L Statement having the prescribed contents and documents accordingly and should file a copy of the statement with the Registrar of Companies. The companies exempt should also comply with the provisions of Rule 4(2) of Companies (Registration of Foreign Companies) Rules, 2014, which states that the companies under Section 381(1) should also file the statement of related party transaction and statement of repatriation of profits to the Registrar while submitting the statements under Section 381(1).

The notification was signed by Mr. Pramod Kumar, Director to the Government of India. The decision was taken as a step towards the government’s aim of ‘Ease of Doing Business’. The decision will also motivate more airline companies to open their business in the country.

The Finance Minister, Nirmala Sitharaman also reduced the rate of GST for Indian MRO industry View the GST impact on aviation sector in India. The industry raises the complaint that aeroplane ticket prices increased after new tax regime. Read more under aviation from 18% to 5%. The moves were taken to increase the aviation services as the number of flights was comparatively less during the start of 2020.