GST Council notifies 5% GST on Transport of Passengers by Helicopters

The 54th GST Council was held in New Delhi on September 9th, chaired by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.

Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, as well as Finance Ministers of States and UTs (with legislature) and senior officers of the Ministry of Finance and States/UTs, attended the meeting.

Key Recommendation on Transport of Passengers by Helicopters

GST Council Meeting notifies GST @ 5% on the transport of passengers by helicopters on a seat share basis and to regularise the GST for the past period on an ‘as is where is’ basis. The helicopter services include the services for pilgrims and tourists on a sharing basis. This decision primarily benefits the tourism industry and emergency services, as helicopters are frequently employed for transportation in difficult-to-reach areas.

GST on chartered helicopter

They also clarify that chartered helicopter services will continue to attract 18% GST, maintaining a distinction between normal seat-sharing services and special chartered flights. This rate differentiation reflects the diverse nature of services provided in the aviation sector, particularly in terms of cost and accessibility for various categories of consumers.

Currently, the GST rate for chartered air services in India varies on the purpose of the flight. If the chartered flight is for domestic travel, the GST rate is 5%, with the Input Tax Credit (ITC) available exclusively on input services.

International charter flights are zero-rated, which means no GST is levied because they are considered an export of services. Meanwhile, the GST rate for non-passenger services (e.g., cargo or other reasons) is normally 18%, which is consistent with other non-passenger air services.