Urging India to respect reciprocal privileges, diplomats posted in New Delhi have complained to the Ministry of External Affairs (MEA) that the new GST regime altered the tax-exempt status of the foreign missions.
The change of status and other issues were addressed at a workshop organised by the MEA recently, even as the ambassadors complained that the GST regime threatened the confidential nature of diplomacy.
“Pre-GST, diplomats based in India were entitled to tax-exemption at the point of purchase of goods. Post-GST tax exemption status is altered as now missions have to pay tax first and claim it later from the Government of India. This process increases office work and multiplies avoidable expenditure,” said Ambassador of Mali Niankoro Yeah Samake, who explained that the tax exempt status of diplomatic missions is part of the reciprocal system that Indian missions enjoy abroad.
Ambassador Samake explained that the situation needed urgent remedial measures from the Ministry of Finance and the MEA.
