CBIC notifies 5% IGST on Aircraft Parts, Exempts IGST on Imports for RAMA and Prediction Programme

The Central Board of Indirect Taxes and Customs (CBIC) has notified a uniform 5% Integrated Goods and Services Tax (IGST) on the import of aircraft parts, components, testing equipment, tools, and toolkits, irrespective of their HS classification. This aims to boost Maintenance, Repair, and Overhaul (MRO) activities. Additionally, the CBIC has exempted IGST on the import of specific research equipment under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme. These measures are intended to support the aviation sector and research activities by reducing tax burdens and facilitating smoother operations.