Helicopter ride attracts 5% GST w.e.f. 10.10.2024-CGST Rate notification 07/2024

Starting from October 10, 2024, helicopter rides in India will be subject to a 5% Goods and Services Tax (GST), as per the latest CGST Rate Notification 07/2024. Previously, helicopter services were used to attract 18% GST. 

Let’s understand the changes.

Notification No. 07/2024 - Central Tax (Rate) 08th October 2024

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MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

Date: 08.10.2024

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Notification No. 07/2024 - Central Tax (Rate)

G.S.R. 617(E).- In exercise of the powers conferred by sub-section (1), sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 11/2017-Central 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. 690(E), dated the 28th June, 2017, namely:-

1. In the said notification, in the Table, against serial number 8,

(i) After item (iva) and the entries relating thereto in columns (3), (4), and (5), the following item and entries relating thereto in columns (3), (4), and (5) shall be inserted, namely:

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(ii) In column (3), in item (vii), after the brackets and figures "(iva),", the brackets and figures "(ivb)," shall be inserted.

2. This notification shall come into force with effect from the 10th day of October 2024.

[F. No. 190354/149/2024-TO(TRU-II) - Part-I CBEC]

DILMIL SINGH SOACH, Under Secy.

Note: The principal notification number 11/2017-Central Tax (Rate), dated the 28th June 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June 2017 and last amended vide notification number 12/2023-Central Tax (Rate), dated the 19th October 2023, published in the Gazette of India vide number G.S.R. 759(E), dated the 19th October 2023.

Key Highlights of Notification No. 07/2024 - Central Tax (Rate)

New GST Rate for Helicopter Passenger Transportation:

• It applies to the transportation of passengers by air, in a helicopter, on a seat-share basis, with or without accompanied baggage.
• This change is not applicable for private helicopter bookings which are booked in full and not on a seat-share basis.
• The applicable GST rate is 5% on this service. Previously, it was 18%.
• A condition is specified: No input tax credit can be claimed on goods used to supply this service.

Effective Date: The amendments will come into force on October 10, 2024.

Conclusion

The reduction of the GST rate from 18% to 5%  on helicopter rides, effective from October 10, 2024, marks a pivotal change in India’s aviation sector. As per the CGST Notification No. 07/2024, this new tax applies specifically to passenger transportation by helicopter on a seat-share basis, with or without baggage. 

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