India Imposes a Uniform 5% GST Rate on Imported Aircraft and Parts

In a bid to boost the domestic MRO industry and make India an aviation hub, the government has announced the implementation of a uniform 5% tax (IGST) on all aircraft and aircraft parts. While addressing a press conference, Civil Aviation Minister Kinijrapu Rammohan Naidu said that all aircraft and aircraft engine parts will be covered under a 5% IGST rate, effective from July 15, 2024. This includes all imports. “This will be a major boost for the aviation sector. The new policy eliminates disparities, simplifies the tax structure, and fosters…