India enacted a 5% uniform IGST rate on aircraft and engine parts, effective July 15, to simplify tax structure, boost MRO industry, and attract investment.
India has implemented a uniform 5% IGST rate on all aircraft and aircraft engine parts, effective from July 15. The decision aims to boost the domestic MRO (Maintenance, Repair, and Overhaul) industry, making India a global aviation hub. The uniform tax rate simplifies the tax structure, addresses tax credit issues, and attracts investment. The previous varying tax rates, ranging from 5% to 28%, created challenges such as an inverted duty structure and GST accumulation in MRO accounts.
July 15, 2024
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