The Central Board of Indirect Taxes and Customs ( CBIC ) has notified a 5% Goods and Services Tax ( GST ) on the transport of passengers by helicopters operating on a seat-share basis. The notification no. 07/2024-Central Tax (Rate) dated 8th October 2024 was issued. It shall come into force on 10th October 2024.
This notification followed the recommendations of the GST Council’s 54th meeting held on September 9, 2024, where it was recommended that the new GST rate be implemented alongside the regularisation of past GST dues on an ‘as is where is’ basis.
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The notification specifies that the transportation of passengers, whether with or without accompanied baggage, by helicopter on a seat-share basis will be charged at the reduced GST rate.
In exercise of powers conferred by various provisions of the Central Goods and Services Tax Act, 2017, the CBIC has amended the earlier notification issued in June 2017. The amendment involves the insertion of the new entry relating to helicopter passenger transport in the GST rate schedule. The notification clarifies that input tax credit on goods used in providing the service should not have been claimed.
The CGST and UTGST is mentioned as 2.5% each and the IGST is notified as 5%.
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