The government has exempted the import of aircraft, aircraft engines and its parts via leasing route from the purview of the Goods and Services Tax (GST).
The Finance Ministry in a notification said that airlines will not have to pay GST at the time of import. However, lease rentals will be subject to GST.
The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of import and another 5 per cent at the time of payment of lease rent.
