CBIC vide Notification No. 2/2020- Central Tax (Rate) dated March 25, 2020 amended Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 (“Services Rate Notification”) to reduce CGST rate on Maintenance, Repair and Overhaul (“MRO”) services in respect of aircraft from 18% to 5% with full Input Tax Credit (“ITC”) w.e.f. April 1, 2020.
In serial No. 25, after item (i), (ia) is inserted and in item (ii) “and (ia)” is inserted:
|
S.No. |
Heading | Description of service | Rate in % |
Condition |
|
25. |
Heading 9987 |
(ia) Maintenance, repair or overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts. |
2.5 | – |
|
(ii) Maintenance, repair and installation (except construction) services, other than (i) and (ia) above and serial number 38 below. |
9 |
– |
Similar Notifications has been issued in IGST and UTGST Act as well.
CGST (Rate) Notification- http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-02-2020-cgst-rate-english.pdf
IGST (Rate) Notification- http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-02-2020-igst-rate-english.pdf
UTGST (Rate) Notification- http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-02-2020-utgst-rate-english.pdf