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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.


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.


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.


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.