Govt. Reduces GST To 5% On Domestic Maintenance, Repair and Overhaul Services In Aviation Industry
The Ministry of Civil Aviation has notified the reduction in Goods and Service Tax (GST) from 18% to 5% on Domestic Maintenance, Repair, and Overhaul Services.
The press release stated that the average number of passengers carried in the pre-COVID financial year (2019–20) was around 4 lakh per day. On March 6, 2022, domestic airlines in India carried around 3.7 lakh passengers.
The issue of a reduction of Value Added Tax (VAT) on aviation turbine fuel (ATF) has been taken up with the States and the UTs.
The 11 states/UTs, namely Andaman & Nicobar Islands, Dadar & Nagar Haveli, and Daman & Diu, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Madhya Pradesh, Tripura, Uttar Pradesh, and Uttarakhand, have reduced the VAT on ATF below 5%.