Notification No. 05/2020 – Central Tax (Rate) Explained

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Notification No. 05/2020 - Central Tax (Rate): To amend notification No. 12/ 2017- Central Tax (Rate) so as to exempt satellite launch services provided by ISRO, Antrix Co. Ltd and NSIL as recommended by GST Council in its 42nd meeting held on 05.10.2020.

GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E). - In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 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), No.12/2017- Central Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28^th June, 2017, namely:—

In the said notification, in the Table, after serial number 19B and the entries relating thereto, the following shall be inserted, namely:-

“19C

9965

Satellite launch services supplied by Indian Space Research Organization, Antrix Corporation Limited or New Space India Limited.

Nil

Nil.”

(Pramod Kumar)
Director to the
Government of India

Note: The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28^thJune, 2017, vide number G.S.R. 691 (E), dated the 28^th June, 2017 and was last amended by notification No. 04/2020 - Central Tax (Rate), dated the 30^th September, 2020 vide number G.S.R. 604(E), dated the 30^th September, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 05/2020 – Central Tax (Rate)

Q1: What is Notification No. 05/2020 – Central Tax (Rate)?

Answer:
It exempts GST on satellite launch services by ISRO, Antrix & NSIL.

Q2: Does this exemption include foreign customers?

Answer:
Yes — foreign satellites launched from India also enjoy GST exemption.

Q3: Are private companies covered?

Answer:
GST exemption applies only when launch is provided by
ISRO, Antrix, or NSIL.
However, private launch vehicle companies collaborating with ISRO may indirectly benefit.

Q4: What is the SAC code for these services?

Answer:
9965 (transportation / support to space transport)

Q5: Does this benefit student satellite missions?

Answer:
Yes — lower overall project cost.

Q6: Does GST exemption cover launch preparation & integration?

Answer:
Yes — if bundled as part of “satellite launch services”.

Q7: Tax treatment for satellite manufactured abroad but launched in India?

Answer:
Still GST exempt if launch is done by ISRO/Antrix/NSIL.

Q8: Are downstream services like ground stations also exempt?

Answer:
No — exemption specifically applies only to launch services.

Q9: Any impact on GST input tax credit (ITC)?

Answer:
Launch services = exempt → no ITC allowed on related inputs.

Q10: How do private startups structure contracts now?

Answer:
Recommended: Multi-contract structure
✔ Manufacturing (taxable)
✔ Launch (exempt)
Consult GST expert:
👉 https://finodha.in/gst-compliance/