Seeks to amend Notification No. 11/2017-Union Territory Tax (Rate) dt. 28.06.2017 reducing IGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC

Last updated: 26 March 2020

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This notification amends the previous Union Territory Tax (Rate) Notification No. 11/2017. The Integrated Goods and Services Tax (IGST) rate on Maintenance, Repair, and Overhaul (MRO) services for aircraft has been reduced from 18% to 5%. This change also includes full Input Tax Credit (ITC) benefits for these services.

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 02/2020- Union Territory Tax (Rate) New Delhi, the 26th March, 2020 G.S.R......(E).- In exercise of the powers conferred by sub-section (1), (3) and subsection (4) of section 7, sub-section (1) of section 8, clauses (iv) and (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (1

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FAQ :

The main change is the reduction of the IGST rate on Maintenance, Repair, and Overhaul (MRO) services for aircraft from 18% to 5%.

The previous IGST rate for aircraft MRO services was 18%.

Yes, the notification states that there will be full Input Tax Credit (ITC) available with the reduced rate.

Notification No. 11/2017-Union Territory Tax (Rate) dated 28.06.2017 has been amended.

The IGST rate reduction applies to Maintenance, Repair, and Overhaul (MRO) services in respect of aircraft.

Notification No : 02/2020-Union Territory tax(rate)
Source : http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-02-2020-utgst-rate-english.pdf

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