News > GST: Govt implements uniform 5% tax for all aircraft, aircraft engine parts

GST: Govt implements uniform 5% tax for all aircraft, aircraft engine parts

The uniform rate, effective from Monday itself, was recommended by India's Goods and Services Tax (GST) Council in June and will apply to imports of "parts, components, testing equipment, tools and tool-kits of aircrafts". It was deemed necessary because of "challenges" created by varying tax rates. It will be a boost for local maintenance, repair and overhaul (MRO) businesses, Civil Aviation Minister Kinijrapu Rammohan Naidu said.