The government has exempted the import of aircraft, aircraft engines and its parts via leasing route from the purview of the Goods and Services Tax (GST). <br/><br/>The Finance Ministry in a notification said that airlines will not have to pay GST at the time of import. However, lease rentals will be subject to GST. <br/><br/>The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of import and another 5 per cent at the time of payment of lease rent.

The government has exempted the import of aircraft, aircraft engines and its parts procured on lease from the purview of the Goods and Services Tax (GST). <br/><br/>The Finance Ministry in a notification said that airlines will not have to pay GST on import of aircraft and its parts, if GST was paid on their lease. The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of import and another 5 per cent at the time of payment of lease rent.<br/><br/>Its concerns were raised by the Civil Aviation Ministry before the Revenue Department on several occasions.

The government has exempted the import of aircraft, aircraft engines and its parts procured on lease from the ambit of Goods and Services Tax – GST. <br/><br/>Ministry of Finance in a notification said that airlines would not have to pay GST on import of aircraft and its parts if GST was paid on their lease. <br/><br/>The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of import and another 5 per cent at the time of payment of lease rent. <br/><br/>Civil Aviation Ministry had raised the issue before the revenue department on several occasions.<br/>