Notification No. 05/2020 - Integrated Tax (Rate) Explained

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Notification No. 05/2020 - Integrated Tax (Rate): To amend notification No. 9/ 2017- Integrated 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 5, sub-section (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with 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.9/2017- Integrated 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. 684 (E), dated the 28^th June, 2017, namely:-

In the said notification, in the Table, after serial number 20B and the entries relating thereto, the following shall be inserted, namely:-

“20C

9965

Satellite launch services supplied by Indian Space Research Organisation, 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. 9/2017 - Integrated Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 684 (E), dated the 28^th June, 2017 and was last amended by notification No. 04/2020 - Integrated Tax (Rate), dated the 30^th September, 2020 vide number G.S.R. 605(E), dated the 30^th September, 2020.

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

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

Answer:
It exempts satellite launch services provided by ISRO, Antrix & NSIL from IGST.
notfctn-05-2020-igst-rate-engli…

Q2: From which date is the exemption applicable?

Answer:
From 16 October 2020.

Q3: What is the HSN/SAC code?

Answer:
SAC 9965 — “Satellite launch services”.
notfctn-05-2020-igst-rate-engli…

Q4: Does the exemption apply to both domestic and foreign customers?

Answer:
Yes ✔ Global clients benefit from 0% GST.

Q5: Is payload integration included in exemption?

Answer:
Yes — it forms part of the launch service bundle.

Q6: Does this apply to private launch service providers in India?

Answer:
Not directly ❌
Only ISRO / NSIL / Antrix listed in notification.

Q7: Can private SpaceTech companies claim exemption indirectly?

Answer:
Yes — subcontracted services to ISRO/NSIL may get relief structure.

Q8: Does the exemption include tracking & telemetry services?

Answer:
Yes — if they form part of the launch service contract.

Q9: What if satellites are launched from international locations?

Answer:
POS rules apply → Consult GST specialists for treaty classification.

Q10: Why was this recommended in the 42nd GST Council Meeting?

Answer:
To boost space commercialization and attract global customers.

Q11: Does NSIL replace Antrix?

Answer:
NSIL is commercial arm of ISRO, launched for global contracting.

Q12: Any export documentation needed?

Answer:
Yes — contractual compliance under zero-rated supplies still required.

Q13: Are satellite components GST-exempt?

Answer:
No ❌ Only launch services exempt.

Q14: Do startups need GST registration?

Answer:
If making taxable supplies → Yes
👉 https://finodha.in/online-gst-registration/

Q15: Can Finodha support SpaceTech GST compliance?

Answer:
Absolutely ✔
👉 https://finodha.in/gst-compliance/

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