India has implemented a uniform 5% tax on all imports of aircraft components and aircraft engine parts, unifying the tax rate that previously ranged between 5% and 28%. The new tax rate, effective immediately, was recommended by the Goods and Services Tax (GST) Council in June and will apply to various items related to aircraft maintenance and repair.
This change is intended to address the challenges posed by varying tax rates and is expected to benefit local maintenance, repair, and overhaul (MRO) businesses, particularly as Indian airlines have recently placed significant orders for jets.