Important Keyword: Notification No. 07/2024 – Central Tax (Rate), helicopter GST rate, GST on air transport, GST seat share helicopter, GST circular October 2024,
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[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 – Central Tax (Rate): Seeks to amend Notification No 11/2017 – Central Tax (Rate) dated 28.06.2017
Table of Contents
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-section (1), sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 11/2017-Central 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. 690(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. | 2.5 | 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 4 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 number 11/2017 -Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and last amended vide notification number 12/2023-Central Tax (Rate), dated the 19th October, 2023, published in the Gazette of India vide number G.S.R. 759(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 07/2024 – Central Tax (Rate)
Q1: What is Notification No. 07/2024-Central Tax (Rate) all about?
Answer:
This notification amends the original Notification No. 11/2017-Central Tax (Rate) to introduce GST applicability on a new category of service — transportation of passengers by air in a helicopter on a seat-share basis. A 2.5% GST rate is now applied, provided no input tax credit on goods is claimed.
Q2: What new service category has been introduced under this amendment?
Answer: The service “Transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis” has been introduced under item (ivb) in serial number 8 of the notification table.
Q3: What is the GST rate applicable to helicopter seat-share services? 🚁
Answer: A GST rate of 2.5% applies to such services — but only when no input tax credit has been availed on goods used in providing this service.
Q4: Is input tax credit (ITC) allowed under this new helicopter service?
Answer: ❌ No. Input tax credit on goods is not allowed if the supplier chooses the 2.5% concessional GST rate for this service.
Q5: When does Notification No. 07/2024-Central Tax (Rate) become effective?
Answer: 📅 The notification comes into force on 10th October 2024.
Q6: Where does this new item appear in the original notification table?
Answer: It has been inserted under serial number 8 after item (iva), and marked as (ivb). Additionally, clause (vii) has been updated to include (ivb) for cross-referencing.
Q7: Who will benefit from this new notification?
Answer: Aviation operators offering helicopter rides on a per-seat basis and their customers stand to benefit. It provides a structured tax rate while reducing ambiguity about such niche services.
Q8: Does this change apply to private helicopter hires?
Answer: 🚫 No. The clause specifically applies to seat-share basis services. Private charters (where the entire helicopter is booked) fall under different provisions.
Q9: How does this affect tour operators offering helicopter services in India?
Answer: Tour operators providing seat-share helicopter tours (like those to Vaishno Devi or Kedarnath) must now charge GST at 2.5%, provided they meet the ITC condition. This makes compliance simpler and taxation more predictable.
Q10: Can this rate be combined with any other concessions or exemptions?
Answer: No. To enjoy the 2.5% GST rate, the provider must forgo the input tax credit on goods. This rate is conditional and exclusive.
📚 Related Updates Worth Knowing
- 📜 Notification 11/2017 was last amended by Notification No. 12/2023-Central Tax (Rate) on 19th October 2023.
- 🧾 Businesses involved in aviation must maintain documentation to prove non-availment of ITC on goods.
- 🛫 This update complements efforts to rationalize GST on various air transport services under the broader reforms from the GST Council’s recommendations.
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✅ Summary:
Notification No. 07/2024 – CT(R) introduces clarity and concessional GST treatment for helicopter passenger transport services on a seat-share basis. With a 2.5% rate and no ITC on goods, it’s aimed at easing compliance and promoting transparency.
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Download PDF: Notification No. 07/2024 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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