Business

To give a boost to the aviation sector, GST for domestic MRO services reduced from 18% to 5%

March 14, 2022
Bharat Times

To give a boost to the aviation sector, GST for domestic MRO services reduced from 18% to 5%

new Delhi:

The Minister of State for Civil Aviation General (Retd) Government has reduced the rate of Goods and Services Tax (GST) on Domestic Maintenance, Repair and Overhaul (MRO) services from 18 per cent to 5 per cent. ) VK Singh said on Monday.

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

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

In a written reply, the minister said that the average number of passengers in the pre-COVID financial year (2019-20) was around 4 lakh per day. As on 6 March 2022, domestic airlines carried around 3.7 lakh passengers in India.

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

The Minister said that the Central Government has taken up the issue of reduction in Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) with the States and Union Territories.

Eleven states/UTs have reduced VAT on ATF to less than 5 per cent. These states/UTs include Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Ladakh, Madhya Pradesh, Tripura, Uttar Pradesh and Uttarakhand.

The Minister said that the Government of India has given ‘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.