The Government notified the Satellite launch services supplied by ISRO, Antrix Corporation or New Space India Limited to be the exempted service under GST.
The notification seeks to amend Notification No. 12/2017- Central Tax (Rate) the 28th June, 2017 which pertains to Exemptions on supply of services under CGST Act.
In the notification serial number 19C is added in order to exempt Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited.
Before this announcement 18% GST was applicable on the Satellite launch services. This levy of GST on Indian firms had been forcing Indian satellite-builders to launch their satellites from foreign soil using foreign rockets.
The GST exemption will help protect the native satellite industry utilise homegrown launch capabilities without the upfront GST burden and give it a level-playing field.
The Government with the objective to encourage domestic launching of Satellites by ISRO and Antrix Corporation (ISRO’s commercial arm), GST Council has decided that 18% GST will completely be scrapped.
The startups that are manufacturing satellites will be exempted from GST now when they choose Indian launch vehicle.Subscribe Taxscan AdFree to view the Judgment