GST clarification to make Indian MRO industry competitive
The GST Council's recent decision to implement a uniform 5% tax rate on imports of aircraft parts and components is set to benefit India's aircraft maintenance and repair industry. This move aims to resolve customs classification ambiguities that previously hindered the industry's growth.
A revision of goods and services tax (GST) rules is likely to bring relief for India’s aircraft maintenance and repair industry which has for long been trying to take advantage of the booming aviation market in India.
Last week, the 53rd GST council recommended a uniform 5% tax on imports of parts, components, testing equipment, tools and toolkits of aircraft, irrespective of their HSN code.
