India Implements 5% IGST Rate on Aircraft and Engine Parts to Boost MRO Sector

• Government implements uniform IGST rate of 5% on all aircraft and aircraft engine parts
• Previously, varying GST rates created challenges including an inverted duty structure and GST accumulation in MRO accounts
• New policy aims to eliminate disparities, simplify tax structure, and foster growth in MRO sector
• Government’s vision is to transform India into a leading aviation hub
• Indian MRO industry projected to become a four-billion-dollar industry by 2030
• Uniform 5% IGST rate aims to reduce operational costs, resolve tax credit issues, and attract investment
• Move expected to enhance competitiveness of Indian MRO sector, foster innovation and efficiency, and create a robust aviation sector.

Source: newsonair.gov.in

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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