Over 20 flights receive bomb threats
Over 20 aircraft of various airlines received bomb threats on Friday afternoon, the Civil Aviation sources said.
Civil Aviation Minister Kinjrapu Rammohan Naidu has announced the implementation of a uniform IGST rate of 5% on all aircraft and aircraft engine parts, effective from 15 July 2024.
This decision marks a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry, aimed at making India a global aviation hub, the Ministry of Civil Aviation said in a statement.
While commenting on the development, Minister Naidu, said, “The introduction of a uniform 5% IGST rate on MRO items is a major boost for the aviation sector. Previously, the varying GST rates of 5%,12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts.”
Advertisement
“This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector,” he said.
Union Minister applauded the efforts of the Ministry of Civil Aviation,Ministry of Finance and other stakeholders who have worked diligently to achieve this policy adjustment recommended by the GST Council in its 53rd meeting on 22nd June 2024, the uniform 5% IGST rate aims to reduce operational costs, resolve tax credit issues, and attract investment.
Highlighting the future prospects, Naidu stated, “Our vision is to transform India into a leading aviation hub. The Indian MRO industry is projected to become a $4 billion industry by 2030. This policy change is a crucial step towards building a strong ecosystem for MRO services, driving innovation, and ensuring sustainable growth.”
Notably, vide Notification No. 28/2024-Customs, Dated: 12th July, 2024, the CBIC amended notification No. 50/2017-Customs to give effect to the following recommendation of 53rd GST Council meeting.
CBIC notifies that a uniform rate of 5% IGST will apply to imports of ‘Parts, components, testing equipment, tools and tool-kits of aircrafts, irrespective of their HS classification to provide a fillip to MRO activities subject to specified conditions.
Advertisement
