GST Council meet: Uniform 5% rate on drones for business use on agenda

The Goods and Services Tax (GST) Council, in its next meeting, is likely to fix a uniform 5 per cent GST rate on all commercial-use drones, according to sources. This move aims to eliminate confusion in the classification of unmanned aircraft systems (UAS), also known as drones, and provide much-needed clarity to the industry. 

This could be a major relief to India’s burgeoning drone industry, which consists of around 488 drone companies that have collectively secured $518 million in funding so far, according to market intelligence platform Tracxn.

 

Currently, drones attract different GST rates depending on their classification under various