Important Keyword: Notification No. 07/2024-Integrated Tax (Rate), GST rate helicopter, GST on air transport, seat share basis GST, Integrated Tax Rate 2024, Finodha GST support,
Words:1035; Read time: 5 minutes
Table of Contents
[F. No. 190354/149/2024-TO(TRU-II) – Part-I CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 8th October, 2024
Notification No. 07/2024 – Integrated Tax (Rate): Seeks to amend Notification No. 8/2017 – Integrated Tax (Rate) dated 28.06.2017
GST [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R……(E).-In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 5, subsection (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the IGST Act, 2017 (13 of 2017), read with sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the CGST Act, 2017 (12 of 2017),
the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017-Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017, namely:-
- In the said notification, in the Table, against serial number 8,
- after item (iva) and the entries relating thereto in columns (3), (4) and (5), the following item and entries relating thereto in columns (3), (4) and (5) shall be inserted, namely: –
| (3) | (4) | (5) |
| “(ivb) Transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis. | 5 | Provided that credit of input tax charged on goods used in supplying the service has not been taken. [Please refer to clause (iv) of paragraph 5 relating to Explanation].” |
- in column (3), in item (vii), after the brackets and figures “(iva),”, the brackets and figures “(ivb),” shall be inserted.
- This notification shall come into force with effect from the 10th day of October, 2024.
(Dilmil Singh Soach)
Under Secretary to the
Government of India
Note: – The principal notification no. 8/2017 – Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the Az28th June, 2017
and last amended vide notification no. 15/2023- Integrated Tax (Rate), dated the 19th October, 2023 published in the official gazette vide number G.S.R. 760(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 07/2024 – Integrated Tax (Rate)
Q1: 🛩️ What does Notification No. 07/2024-Integrated Tax (Rate) address?
Answer:
This notification amends the original Notification No. 8/2017-Integrated Tax (Rate) by introducing a new category under Sl. No. 8. It covers the transportation of passengers by air in a helicopter on a seat-share basis. The GST rate applied is 5%, subject to the condition that input tax credit (ITC) on goods used for the service is not availed.
Q2: 💺 What exactly is “seat share basis” in helicopter transport under GST?
Answer:
“Seat share basis” means the passengers pay per seat rather than chartering the whole helicopter. This model is now clearly defined for GST applicability under this amendment.
Q3: 📆 From when does the new helicopter seat-share GST rate come into force?
Answer:
The amendment comes into effect from 10th October 2024 as per the notification.
Q4: 🔄 How is this amendment different from earlier provisions on air transport under GST?
Answer:
Previously, only general air transport categories were included. With this amendment, a specific entry (ivb) is introduced for helicopter travel on a seat-share basis, ensuring clarity and standardized GST application.
Q5: 🧾 Can service providers claim ITC on goods used for helicopter operations?
Answer:
No, the notification clearly states that input tax credit (ITC) on goods used for providing the seat-share helicopter service cannot be claimed if opting for the 5% GST rate.
Q6: 🤝 What are the compliance tips for aviation startups or helicopter charter services?
Answer:
They must clearly classify their services under the new clause (ivb) and ensure ITC on goods is not claimed. Proper invoicing and tax treatment should be ensured. Need help? Consult GST professionals at Finodha 👉 https://finodha.in/gst-compliance/
Q7: 🔍 Where can I refer to the original GST Notification No. 8/2017 and its latest amendment?
Answer:
The original was published on 28th June 2017, and this latest amendment (07/2024) was notified on 8th October 2024, effective from 10th October 2024.
Q8: 🚁 Are there other GST rates for air travel besides helicopters?
Answer:
Yes. This notification adds to existing classifications like economy class and business class flights under earlier items (iva) and (vii). For full clarity, review the GST Rate Table or consult GST experts via https://finodha.in/online-gst-registration/
📚 Summary:
Notification No. 07/2024 – Integrated Tax (Rate) adds clarity to GST on helicopter transportation (seat share basis), charging 5% GST with restrictions on ITC of goods. It supports aviation service classification and compliance.
📢 Bonus Tip: For businesses providing aviation or logistics services, accurate classification under GST is crucial. Finodha offers setup & registration support 👉 https://finodha.in/setup-business/
Download PDF: Notification No. 07/2024 – Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
