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GST on domestic MRO services has been reduced from 18% to 5%, providing a boost to the aviation industry

The government has decreased the Goods and Services Tax (GST) rate on domestic maintenance, repair, and overhaul (MRO) services from 18% to 5% in order to boost the aviation sector, said General (Retd) V K Singh, Minister of State for Civil Aviation.

Mr Singh stated in a written reply to a Rajya Sabha query that the government has taken numerous initiatives to accommodate the increased demand in the aviation sector in the future.

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The Goods and Services Tax (GST) rate for home Maintenance, Repair, and Overhaul (MRO) services has been decreased from 18% to 5%, according to the minister.

The minister stated in his written response that the average number of passengers carried in the pre-COVID fiscal year (2019-20) was roughly 4 lakh per day. Domestic airlines in India carried around 3.7 lakh passengers on March 6, 2022.

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He believes that in a few months, the number of daily flying passengers will surpass pre-COVID levels.

The minister stated that the central government has discussed the decrease of VAT on aviation turbine fuel (ATF) with the states and union territories.

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Eleven states/UTs have decreased ATF VAT to less than 5%.

The minister stated that the Government of India has given ‘in-principle’ clearance for the construction of 21 greenfield airports around the nation.

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