"We are trying to bring it down to a level of 5 per cent (from existing 18 per cent)," Economic Adviser to the Ministry of Civil Aviation Vandana Aggarwal said, adding that they were in touch with the Finance Ministry on the matter.
There is also a proposal under consideration to give a five-year tax exemption to newly-set up MRO facilities, she said.
For existing MROs as well, there would be reduction in the GST burden.
Aggarwal was speaking at the Indo-French Defence and Aerospace Cooperation meet here today.
In October last year, the MRO industry had made a representation to the Civil Aviation Ministry demanding protection from the GST.
While the exemption from customs duty on imports of spares and other materials gave a big boost to the industry, the GST offset the competitive advantage it had gained.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)