5% Uniform IGST on Aircraft Parts Imports: What Changed

Auto-drafted from official sources and under review by CA Rajeev Ranjan. Verify against the original notification before you act.

What Changed

The GST Council, at its 57th meeting in October 2026, recommended a uniform 5% IGST rate on imports of aircraft parts, components, testing equipment, tools, and tool-kits into India.

The key word here is uniform. Previously, the applicable IGST rate on such imports could vary depending on how an item was classified under the Harmonised System (HS) code. That meant importers sometimes faced higher rates if a part fell under a general HS heading rather than a specific aviation-related one, a common pain point in MRO (Maintenance, Repair and Overhaul) operations.

Now, irrespective of HS classification, the rate is capped at 5%. The classification debate, at least for rate determination purposes, is effectively set aside for these goods.

Who Is Affected

This change is directly relevant to:

• Airlines (domestic and foreign carriers operating in India) importing spare parts or ground equipment
• MRO companies bringing in testing equipment, tools, and tool-kits
• Aircraft manufacturers and their suppliers importing components for assembly or repair
• Customs and tax teams responsible for classifying and valuing aviation-related imports
• Freight forwarders and CHAs advising on import duty structures for aviation clients

Why It Matters

Aircraft parts frequently straddle multiple HS chapters. A hydraulic component, for instance, might be classifiable under general machinery headings at a higher rate, rather than under a specific aircraft parts heading. This ambiguity has historically led to disputes, duty demands, and increased import costs.

A rate that applies regardless of HS classification removes that ambiguity for IGST purposes. It should reduce litigation, simplify import planning, and marginally lower the landed cost of aviation inputs, a meaningful saving given the volume and value of parts that airlines and MRO operators import regularly.

What You Should Do

1. Check the official notification, the GST Council recommendation needs to be implemented via a formal customs/IGST notification. Confirm the exact effective date and notification number from the official gazette or PIB release before applying the new rate.
2. Review open import orders and advance licences to assess whether reclassification or revised duty workings are needed.
3. Coordinate with your CHA to ensure Bill of Entry filings reflect the updated rate once the notification is live.
4. Assess past imports, if you paid IGST at a higher rate on eligible goods recently, check with your tax advisor whether a refund claim is possible under the applicable rules.

If your business regularly imports aviation-related goods, flag this change to your finance and procurement teams now so you are ready to act as soon as the formal notification is issued.

Source: Official notification