Approved Flying Training Courses Mandated by DGCA for Completion Certificates Exempt from GST: CBIC [Read Circular]

The Central Board of Indirect Taxes and Customs ( CBIC ), vide circular no. 234/28/2024-GST dated 11 October 2024 has clarified that Goods and Services Tax ( GST ) is exempted on approved flying training courses mandated by the Directorate General of Civil Aviation ( DGCA ) for the issuance of completion certificates.

The board received several representations regarding the applicability of GST on these specialised training programs conducted by Flying Training Organizations (FTOs).

Under the GST Act, services provided by educational institutions to students, faculty, and staff are exempt from GST, as outlined in Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. The notification defines “educational institution” as one that offers services as part of a curriculum leading to qualifications recognized by prevailing laws.

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The act governing flying training is established under the Aircraft Act of 1934 and its subsequent rules. The Central Government, exercising powers under this Act, formulated the Aircraft Rules of 1937, which outline the requirements for approved training organisations. These regulations specify that only DGCA-approved FTOs can enrol students to acquire the necessary flying experience for private pilot and commercial pilot licences.

Furthermore, the Civil Aviation Requirements (CAR) detail the procedures for providing completion certificates to students who successfully complete the training courses at these approved organizations.

Thus, based on these, the CBIC's clarification confirms that approved flying training courses conducted by DGCA-recognized FTOs are covered under the exemption outlined in the aforementioned GST notification. This means that these training courses, which are essential for aspiring pilots, will not incur GST.

The circular states that “... Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and are hence, exempt.”

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