Substantial GST reduction on household maintenance, repair and overhaul services. Details here

To meet growing demand in the aviation sector, the government reduced the Goods and Services Tax (GST) rate from 18% to 5% for domestic maintenance, repair and overhaul services (MRO). Civil Aviation General VK Singh (Retired) said in a written response to the Rajya Sabha today.

The Minister said that the issue of Value Added Tax (VAT) reduction on Aviation Jet Fuel (ATF) has been discussed with States and UTs. In total, the 11 States/UTs that have reduced VAT on ATF to less than 5% are: Andaman & Nicobar Islands, Dadar & Nagar Haveli & Daman & Diu, Gujarat, Haryana, Himachal Pradesh , Jammu and Kashmir, Ladakh, Madhya Pradesh, Tripura, Uttar Pradesh and Uttarakhand.

Read also : Resumption of international flights at 100% capacity: key things to know

The other decisions taken by the government are:-

(i) AAI has undertaken the development of new and existing airports, with planned capital expenditure of approximately 25,000 crores in the next five years. This includes construction of new terminals, expansion and modification of existing terminals, expansion and/or reinforcement of existing runways, aprons, airport navigation services (ANS) infrastructure, towers controls and technical blocks, etc.

(ii) Delhi, Hyderabad and Bangalore public-private partnership (PPP) airports are undertaking major expansion projects of approximately 30,000 crore by 2025. Additionally, 36,000 crore has been earmarked to invest in the development of new airports across the country in PPP mode.

(iii) The government has granted “in principle” approval for the establishment of the 21 new airports across the country. So far, eight such airports in Sindhudurg and Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka and Kushinagar in Uttar Pradesh have been operational.

(iv) Under the Regional Connectivity Program (RCS) – Ude Desh ka Aam Nagrik (UDAN), 403 routes connecting 65 airports (including 8 heliports and 2 water aerodromes) have been put into service as of 31 January 2022.

The average number of passengers carried in the pre-Covid financial year (2019-2020) was around 4 lakh per day. On March 6, 2022, domestic airlines in India carried about 3.7 lakh passengers. The number of daily air passengers could cross pre-COVID levels in a few months.

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