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The 54th GST Council meeting brought about a significant reduction in the Goods and Services Tax (GST) levied on helicopter services used for religious purposes in Uttarakhand. This decision, announced by Uttarakhand Finance Minister Premchand Aggarwal, lowers the GST rate from 18% to 5% for helicopter services used by pilgrims and tourists on a sharing basis. The reduced rate applies to popular pilgrimage destinations like Kedarnath and Badrinath, aiming to make religious tourism more accessible and affordable.
While helicopter services for religious purposes received a GST reduction, chartered helicopter services continue to be taxed at 18%. This distinction highlights the council's focus on promoting religious tourism while maintaining a balanced approach to the overall aviation sector. The GST rate for chartered air services in India varies based on the purpose of the flight. For domestic passenger transportation, the GST rate stands at 5% with input tax credit (ITC) available only for input services. International charter flights are zero-rated, meaning no GST applies as they are treated as exports. Non-passenger services like cargo transportation are taxed at 18%, similar to other non-passenger air services.
Beyond the helicopter service discussion, the GST Council deliberated on various other topics, including the implementation of an 18% GST on transactions below ₹2,000 processed by payment aggregators. This matter, potentially impacting customers' ability to make small online payments, was referred to the GST fitment committee for further review. The council also engaged in discussions on GST-related matters concerning life and health insurance policies, acknowledging the sector's significance and the need for balanced policies to encourage growth while ensuring fair taxation. However, no concrete proposals were finalized.
The GST fitment committee is also reviewing GST implications for research and development activities undertaken by educational institutions. Notably, the Directorate General of GST Intelligence (DGGI) issued notices to seven universities, including IIT Delhi and Punjab University, over research grants worth Rs 220 crore. The council's deliberations on these diverse issues reflect its ongoing efforts to streamline the GST regime, address sector-specific concerns, and ensure a fair and transparent tax system.
Source: Tax On Helicopter Services For Religious Purposes Reduced To 5%: Uttarakhand FM