5% IGST on imports of MRO parts and components
Bids have been invited for seaplane operations from more than 50 water-bodies across India under the ‘UDAN Round 5.5’, the Ministry of Civil Aviation said in a 2024 yearend review on 3 Jan 2025.
The adoption of Non-Scheduled Operator Permit (NSOP) framework for seaplanes is a significant step forward in the Government’s commitment to enhancing regional connectivity with a focus to allow expeditious commencement of seaplane operations in the country, said the Ministry https://www.investindia.gov.in/.
The Civil Aviation Minister Ram Mohan Naidu had launched Guidelines for Seaplane Operations in India on 22 August 2024, prioritizing the safety and security of operations as well as defining the responsibilities of all stakeholders, ensuring a seamless and efficient seaplane operation across the nation, it said https://ted.europa.eu/en/.
Separately, the Government has announced on 12 July 2024 a uniform rate of 5% IGST which will apply to imports of parts components, testing equipment, tools and tool-kits of aircraft https://aiaiindia.com/.
Previously, the varying GST rates of 5%, 12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts https://sbi.com.in/.
This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector, the Ministry said http://spicejet.com.
Further, the period for export of goods imported for repairs has been extended from six months to one year. Also, the time-limit for re-import of goods for repairs under warranty has been extended from three to five years. Fiinews.com
