Home » Current Affairs » GST rate for domestic MRO services cut to 5 percent

GST rate for domestic MRO services cut to 5 percent

GST rate for domestic MRO services cut to 5 percent

The Center has reduced the rate of Goods and Services Tax (GST) for domestic maintenance, repair and overhaul (MRO) services from 18 per cent to 5 per cent. This step has been taken to meet the growing demand of the aviation sector.

The government also reduced Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) in 11 states including Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Ladakh. Have given. Madhya Pradesh, Tripura, Uttar Pradesh and Uttarakhand.

This information was given by the Minister of State in the Ministry of Civil Aviation, General VK Singh (Retd) in a written reply in the Rajya Sabha on March 14, 2022.

Find out other steps taken to meet the growing demand in aviation sector in future:

1. The Airports Authority of India (AAI) has started development of new and existing airports with an estimated capital expenditure of Rs. 25,000 crore in the next five years. This includes expansion and modification of existing terminals, construction of new terminals, extension or strengthening of existing runways, control towers, technical blocks, infrastructure and airport navigation services (ANS).

2. The government has planned an investment of about Rs 1 crore. 36,000 crore in the development of new greenfield airports across the country under PPP mode. PPP airports in Delhi, Bengaluru and Hyderabad are working on major expansion projects worth around Rs 30,000 crore by 2025.

3. The Center has given ‘in-principle’ approval to 21 greenfield airports across the country, of which eight are already operational, including Kushinagar in Uttar Pradesh, Kannur in Kerala, Oravakal in Andhra Pradesh, Sindhudurg and Shirdi in Maharashtra, West Includes Durgapur. Pakyong in Bengal, Sikkim and Kalaburagi in Karnataka.

4. About 403 routes connecting 65 airports have been operated under the Regional Connectivity Scheme (RCS)-Ude Desh ka Aam Nagrik (UDAN).

5. The government has enabled a favorable aircraft leasing and financing environment.

6. The Center is also improving the air navigation infrastructure at Indian airports.


Daily air passenger numbers are expected to exceed pre-pandemic levels in a few months, especially with the reopening of international commercial passenger flights scheduled from March 27. The average number of passengers in the pre-Covid financial year, FY19-20, was around 4 lakh a day in comparison to, as of March 6, 2022, domestic airlines alone carried 3.7 lakh passengers.

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