In a major relief to airlines, the import of aircraft on lease will be exempted from the Goods and Services Tax (GST), the Finance Ministry said in a notification on Saturday.
“We represented the matter to the Revenue Department. The Revenue Department moved expeditiously and clarified the matter immediately,” Civil Aviation Secretary R.N. Choubey told The Hindu.
Airlines will not have to pay taxes on import of aircraft on lease if the GST is already paid on lease rentals, according to the notification by the Finance Ministry.
“The government has finally provided exemption from the levy of GST as part of customs duty on the import of aircraft, engines and parts on lease basis. Thus, GST would only be payable on payment of lease rentals and not at the time of import,” said Abhishek Jain, Tax Partner, Ernst & Young.
“This would bring huge relief to the airline industry by resolving the issue of dual levy of GST, especially for the reason that GST paid at the time of import was not creditable against economy class travel,” Mr. Jain said.
08/07/17 Somesh Jha/The Hindu
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“We represented the matter to the Revenue Department. The Revenue Department moved expeditiously and clarified the matter immediately,” Civil Aviation Secretary R.N. Choubey told The Hindu.
Airlines will not have to pay taxes on import of aircraft on lease if the GST is already paid on lease rentals, according to the notification by the Finance Ministry.
“The government has finally provided exemption from the levy of GST as part of customs duty on the import of aircraft, engines and parts on lease basis. Thus, GST would only be payable on payment of lease rentals and not at the time of import,” said Abhishek Jain, Tax Partner, Ernst & Young.
“This would bring huge relief to the airline industry by resolving the issue of dual levy of GST, especially for the reason that GST paid at the time of import was not creditable against economy class travel,” Mr. Jain said.
08/07/17 Somesh Jha/The Hindu
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