Union Civil Aviation Minister, Shri Kinjrapu Rammohan Naidu, announced a uniform 5% IGST rate on all aircraft and engine parts, effective July 15, 2024. This move aims to boost India’s domestic Maintenance, Repair, and Overhaul (MRO) industry and establish India as a global aviation hub. Previously, varying GST rates created challenges like an inverted duty structure and GST accumulation. The new policy simplifies the tax structure, fostering growth in the MRO sector. Shri Naidu credited Prime Minister Narendra Modi’s leadership for this change, aligning with the Atma Nirbhar Bharat initiative. The policy, recommended by the GST Council in its 53rd meeting, is expected to reduce operational costs, resolve tax credit issues, and attract investment.
India Implements Uniform 5% IGST on Aircraft Parts
