Big Relief: GST Reduced in Repair And Maintenance Services in Aviation Sector

On Monday, it was decided to reduce GST on some services in the aviation sector. These include in-house maintenance, repair and overhaul services (MRO) services. The GST on them has been reduced from 18 per cent to 5 per cent. The information about the reduction of GST on these services has been shared by the Ministry of Civil Aviation on Monday.

The expansion of MRO sector is expected to assist in employment creation as the industry is labour-intensive. Like other industries such as information technology, where India has become the back-office of the world, certain tweaks in taxation could see aircraft fly to India for MRO visits, experts have claimed.

Civil Aviation Minister Jyotiradiya Scindia, while speaking on India’s new policy for aircraft MRO services in September last year, said the ministry plans to implement allotment process for MROs via open tender and that it will provide allotment for 30 years to provide stable ecosystem for investors.

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