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Notification No. 07/2024 – UTTR |GST Rate Cut for Air Travel

by | Nov 18, 2024 | GST, 2024 Notifications, Notifications, Union Territory Tax (Rate) 2024 Notifications | 0 comments

Notification No. 07/2024 - Union Territory Tax (Rate)
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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 – Union Territory Tax (Rate): Seeks to amend Notification No.11/2017-Union Territory 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 7, sub- section (1) of section 8, clause (iv), clause (v) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with 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 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.11/2017-Union Territory 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. 702(E), dated the 28th June, 2017, namely:-

  1. In the said notification, in the Table, against serial number 8,
  2. 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.2.5Provided 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 -Union Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) ,vide number G.S.R. 702 (E), dated the 28th June, 2017 and was last amended vide notification number 12/2023-Union Ta (Rate), dated the 19th October, 2023 published in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 761(E), dated the 19th October, 2023.

Frequently Asked Questions (FAQs): Notification No. 07/2024 – UTTR

Q1: What is the purpose of Notification No. 07/2024 – Union Territory Tax (Rate)?

Answer:
This notification amends Notification No. 11/2017–UTT (Rate) to insert a new entry (ivb) under serial no. 8, granting a concessional GST rate for helicopter passenger transport on a seat-share basis. It aims to promote affordable air mobility in remote regions.
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Q2: What service is covered under entry (ivb) in this amendment?

Answer:
Entry (ivb) covers:
🚁 “Transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat-share basis.”
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Q3: What is the applicable GST rate under this notification?

Answer:
The GST rate for such helicopter services is reduced to 2.5% (Union Territory GST portion). Combined with CGST, it totals 5%, provided certain input tax credit conditions are met.
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Q4: Is input tax credit (ITC) allowed on goods used in providing this helicopter service?

Answer:
No ❌. The concessional rate is applicable only if the input tax credit on goods used in supplying the service has not been availed.
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Q5: From which date is this notification effective?

Answer:
📅 The revised GST rate under Notification No. 07/2024 – UTTR is effective from 10th October 2024.
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Q6: Has the definition in Item (vii) of the principal notification also been changed?

Answer:
Yes. Item (vii) under column (3) now includes a reference to the newly inserted (ivb), ensuring continuity and compliance across related provisions.
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Q7: Why was this GST rate cut introduced?

Answer:
The rate cut supports:
✈️ Air connectivity in difficult terrains
🛫 Regional connectivity through shared helicopter services
🌐 Public affordability for helicopter transportation
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Q8: What other similar services have concessional GST rates under Notification 11/2017-UTT?

Answer:
Other low-rate services include:
• Air travel in economy class
• Public transport by non-air conditioned railway or road
• Inland waterways passenger transport
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Q9: Where can I get professional help for availing this benefit or understanding GST implications?

Answer:
Consult Finodha’s expert GST professionals here 👉 www.Finodha.in
Explore GST Return Filing 🔗 https://finodha.in/gst-return-filing/
Register for GST 🔗 https://finodha.in/online-gst-registration/
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Q10: How does this impact helicopter operators?

Answer:
Operators offering shared-seat helicopter rides:
🛠 Must refrain from availing ITC on goods
📋 Need to comply with GST invoicing and rate guidelines
📞 Can partner with Finodha for GST advisory: https://finodha.in/gst-compliance/
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Download PDF: Notification No. 07/2024 – Union Territory Tax (Rate)

UTTR-07-2024Download

More Information: https://taxinformation.cbic.gov.in/

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