New Delhi: The Civil Aviation Ministry on Tuesday said the GST exemption for flight simulators and motion simulators will help airlines and academies in reducing their expenses on training equipment.Also, a uniform Goods and Services Tax (GST) of 5 per cent for all drones provides significant policy certainty and eliminates classification disputes, the ministry said in a release.
On September 4, the GST Council decided to rationalise the tax rates into two slabs -- 5 per cent and 18 per cent -- and also reduce the rates on various items. The revised rates will come into force from September 22.Currently, the GST rate is 18 per cent for drones with integrated cameras and 28 per cent for drones classified for personal use.
Under the new structure, the ministry said a uniform GST of 5 per cent has been introduced for all drones, regardless of whether the camera is integrated or separate and irrespective of whether they are used for commercial or personal purposes.
"Greater clarity for manufacturers and lower costs for users will boost drone adoption, especially in sectors like agriculture (crop monitoring, pesticide spraying), petroleum and mining (pipeline and asset inspection), infrastructure (surveying and mapping), logistics (last-mile delivery) and defence/security (surveillance and rapid response)," the ministry said.
Civil Aviation Minister K Rammohan Naidu said the sweeping GST rate reductions across sectors will strengthen ease of living, ease of compliance and ease of doing business in the country."A uniform 5 per cent GST will now apply on all drones, providing significant policy certainty and eliminating classification disputes.
"Furthermore, flight simulators and motion simulators, which are critical for pilot training, have also been exempted from GST. I believe it will encourage the training ecosystem in the country, helping airlines and academies reduce expenditure on training equipment," he said.
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