Budget 2024 Expectation: Tax holiday and GST exemption top Space sector’s Budget wishlist
The Indian Space Association (ISpA), representing the country’s private space companies, has submitted a series of recommendations for the Union Budget 2024-25. These suggestions aim to enhance the financial and overall health of India’s burgeoning space industry. The focus is on providing financial incentives and strategic government support to propel the sector forward.
Key Recommendations
1. Expansion of GST Exemptions
ISpA advocates for expanding the GST exemption currently applied to satellite launch services. They suggest including other critical components such as ground systems and launch vehicles. The exemption reduces GST costs on satellite launch services but does not address the input tax credit on procurement of goods and services. ISpA recommends similar exemptions for procuring key goods and services for satellite launch services. This approach would reduce GST input tax credit costs and benefit the entire supply chain.
2. Tax Holidays and Custom-Duty Exemptions
With space industrial parks planned across various states and significant greenfield investments by both legacy and start-up non-government entities, ISpA urges the government to introduce tax holidays and exemptions for space sector firms. Additionally, they propose concessions on customs duties for notified imports to alleviate the financial burden on these companies.
