GST exempted on import of aircraft

New Delhi, July 10: A relief was given yesterday. The government has decided to exempt the Goods and service tax GST levied on the import of aircraft, aircraft engines and its parts procured on the lease.

This decision has been taken after aviation industry has made representation to the government regarding the problems faced by them due to the imposition of the tax. They have said that currently a dual tax of 5 per cent each is being levied at the time of import and at the time of payment of lease rent.

The government has responded positively and issued a notification stating that airlines would not have to pay GST on the import of aircraft and its parts if the tax was paid earlier during the lease.

The airlines have expressed their gratitude to the government and they hope that other problems such as non-availability of input tax credit to economy class passengers would be sorted out very soon.