GST Council Exempts Flying Institutes And Schools From GST

Mumbai: The 54th GST council has exempted flying institutes and schools conducting training courses by the Directorate General of Civil Aviation (DGCA) approved Flying Training Organizations (FTOs).

The FPJ had extensively reported in August the Maharashtra state Authority for Advance Rulings (AAR) ruling that supply of flying training services provided by the flying institutes to trainees for exemption under the GST law providing relief to aspiring pilots.

The AAR had ruled flying training constitutes education as part of a curriculum for obtaining a qualification recognized by law and the service is exempted under definition of “education institutions” from GST levies.

The state AAR ruled in favour of the National Flying Training Institute Pvt Ltd, a joint venture between Airports Authority of India (AAI) and International Flight School (Mauritius) Limited to operates as a Flying Training Organization (FTO) approved by DGCA.

The GST council meeting chaired by the Union Finance minister Nirmala Sitharaman while exempting flying schools notified GST rate of 5% will apply to passenger transport services by helicopters on a seat-share basis and chartering of helicopters will continue to be subject to an 18% GST rate.