Seeks to amend Notification No. 8/2017-Integrated 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 existing Integrated Tax (Rate) Notification No. 8/2017. It reduces the IGST rate on Maintenance, Repair, and Overhaul (MRO) services for aircraft from 18% to 5%. Additionally, businesses can now claim full Input Tax Credit (ITC) on these services. This change aims to benefit the aviation sector.

[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- Integrated Tax (Rate)

New Delhi, the 26 th March, 2020

G.S.R......(E).- In exercise of the powers conferred by sub-section (1), (3) and sub-section (4) of section 5, sub-section (1) of section 6 and clauses (iii) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 683 (E), dated the 28th June, 2017, namely:-

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FAQ :

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

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

Yes, businesses can now claim full Input Tax Credit (ITC) on these MRO services.

This notification amends Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017.

The new IGST rate for aircraft MRO services is 5%.

Notification No : 02/2020-Integrated Tax (Rate)
Source : http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-02-2020-igst-rate-english.pdf

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