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No GST on imported aircraft, engines and parts taken on lease

The aviation industry had been asking for relief as it was facing a dual levy

Press Trust of India  |  New Delhi 

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Finance ministry in a notification said that airlines would not have to pay GST on the import of aircraft and its parts 

The government has exempted the of aircraft, engines and its parts procured on lease from the purview of the Goods and Services Tax (GST).

The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of and another 5 per cent at the time of payment of lease rent.

Its concerns were raised by the before the revenue department on several occasions.

The finance ministry in a notification on Saturday said that airlines would not have to pay on the of and its parts if was paid on their lease.

Airlines are awaiting a formal clarification on several other areas of concerns such as input tax credit not being available for economy class tickets and the movement of spares from one part of the country to another.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, July 09 2017. 21:07 IST
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