CBIC notifies GST exemption on satellite launch services supplied by organizations in private sector as per recommendations of the 50th GST Council Meeting

Background:

Earlier, the 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to exempt GST on satellite launch services supplied by organizations in the private sector to encourage start-ups.

Notification:

Now, the CBIC vide Notification No. 07/2023-Central Tax (Rate) dated July 26, 2023 has issued an amendment in Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 to implement the recommendations of the 50th GST Council Meeting.

In the said notification, in the Table, against serial number 19C, for the entry in column (3), the following entry shall be substituted: –

Earlier Entry – Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited

Amended Entry – “Satellite launch services.”

Impact of Recommendation & Notification :-

The GST exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (“NSIL”) will be extended to such services supplied by organisations in the private sector also to encourage start-ups.

Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).

The CGST (Rate) Notification: https://egazette.gov.in/WriteReadData/2023/247632.pdf

The IGST (Rate) Notification: https://egazette.gov.in/WriteReadData/2023/247632.pdf

The UTGST (Rate) Notification: https://egazette.gov.in/WriteReadData/2023/247632.pdf

(Author can be reached at info@a2ztaxcorp.com)

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