Lower GST rate on aircraft MRO to boost local business, say service operators

The domestic aircraft Maintenance, Repair and Overhaul (MRO) industry on Saturday welcomed GST Council's decision to lower the GST rate to 5 per cent from 18 per cent and said it will boost the local business.

The industry had long been demanding a reduction in GST rates for a level-playing field vis-a-vis overseas MRO companies, who are taking away almost 95 per cent of the domestic business due to lower taxes.

"The lowering of tax rate to 5 per cent will be a tremendous boost to the Indian MRO industry," AirWorks Executive Director Ravi Menon told PTI.

Menon said that though he had not yet seen the notification, it is a welcome move, adding, "lower taxes will incentivise the MRO industry further in investing in developing infrastructure, capability and competence."