GST reduced on domestic maintenance, repair and overhaul services

GST Rate on maintenance, repair, and overhaul (MRO) services

In order to support the aviation sector, the government has reduced the Goods and Services Tax (GST) rate on domestic maintenance, repair, and overhaul (MRO) services to 5% from 18%, according to Minister of State for Civil Aviation General (Retd) V K Singh.

Mr Singh said in a written reply to a question in the Rajya Sabha that the government has taken several steps to meet future demand in the aviation sector.

“Goods and Services Tax (GST) rate has been reduced from 18 per cent to 5 per cent for domestic Maintenance, Repair and Overhaul (MRO) services,” the minister said.

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The minister stated in his written reply that the average number of passengers carried per day in the pre-COVID financial year (2019-20) was around 4 lakh. Domestic airlines in India carried approximately 3.7 lakh passengers on March 6, 2022.

“The number of daily air passengers may cross pre-COVID levels in a few months,” he said.

According to the minister, the central government has discussed the reduction of VAT on aviation turbine fuel (ATF) with the states and union territories.

The VAT on ATF has been reduced to below 5% in eleven states/UTs. Andaman and Nicobar Islands, Dadar & Nagar Haveli, and Daman & Diu, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Madhya Pradesh, Tripura, Uttar Pradesh, and Uttarakhand are among these states and union territories.

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The Indian government has given ‘in-principle’ approval for the construction of 21 greenfield airports across the country, according to the minister.

The minister noted that the Government of India has accorded ‘in-principle’ approval for setting up of 21 greenfield airports across the country. So far, eight greenfield airports namely, Sindhudurg and Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka and Kushinagar in Uttar Pradesh have been operationalised.

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