How does the uniform IGST rate of 5% for aircraft parts impact the aviation industry in India

Explore the implications of the uniform IGST rate of 5% on aircraft parts effective from July 15 on the aviation sector.
  • Cost reduction: The uniform IGST rate of 5% on aircraft parts will lead to cost reduction for airlines and aircraft manufacturers in India.
  • Increased competitiveness: Lower taxes on aircraft parts will make Indian aviation sector more competitive globally.
  • Encouraging domestic manufacturing: With reduced taxation, domestic manufacturing of aircraft parts may see a boost.
  • Enhanced maintenance and repair services: Cost-effective aircraft parts may encourage airlines to invest in better maintenance and repair services.
  • Fostering growth: Overall, the uniform IGST rate of 5% on aircraft parts is expected to foster growth and development in the aviation industry in India.
Answered 9 months ago
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