 "GSTGST")
A day after the government announced a major boost for the Indian spacetech sector, exempting startups offering satellite launch services from goods and services tax (GST), the industry on Wednesday welcomed the move.
"We welcome the decision of Hon'ble Finance Minister Nirmala Sitharaman to exempt satellite launch services by private organisations from GST. This step will give financial relief to the players and incentivise this nascent segment's growth. This was one of our pre-budget recommendations and we believe it will help enable the growth of indigenous launch capabilities and ensure a level playing field for all,” said A K Bhatt, Director General, Indian Space Association (ISpA).
This comes after the government decided on Tuesday that the GST exemption on satellite launch services supplied by Isro, Antrix Corporation and New Space India Limited (NSIL) will be extended to such services supplied by organisations in the private sector also to encourage startups.
“The satellite launch segment has become a key focus area for Indian startups and SMEs, driving innovation and seeking new revenue opportunities. According to the ISpA-EY report, the space launch segment is expected to grow rapidly by 2025, with a CAGR of 13 per cent, which will be fueled by increased private participation, advanced technology adoption, and cost-effective launch services," Bhatt added.
