Expected cut on GST in MRO industry
The Civil Aviation Ministry is considering to reduce the Goods and Services Tax (GST) levied on the aviation maintenance, repair and overhaul (MRO) industry.
From existing rate of 18%, they are trying to bring it down by 5%. The current rate makes aircraft servicing in India costlier than other countries.
A representation was made by the MRO industry in October last year, to the Civil Aviation Ministry demanding protection from the GST. The exemption from customs duty on imports of spares and other materials gave a big boost to the industry, bur the GST offset the competitive advantage it had gained.