✈️ HSN Chapter 88: Aircraft, Spacecraft & Parts - GST Rates 2026

Answer: Commercial aircraft and helicopters attract 5% GST (HSN 8802) when used for commercial operations - UNCHANGED in GST 2.0.

Complete Commercial Aircraft GST Rates:

Aircraft Type	HSN Code	GST Rate	Use Case
Commercial Helicopters (all sizes)	8802 11/12	5%	Charter, air ambulance, corporate
Light Commercial Aircraft (≤2000kg)	8802 30 00	5%	Flying schools, small charters
Regional Aircraft (2000-15000kg)	8802 40 00	5%	Regional airlines (ATR, Q400)
Commercial Jets (>15000kg)	8802 60 00	5%	Major airlines (Boeing, Airbus)

What Qualifies as "Commercial Use"?

• ✅ DGCA Commercial Operator License: Must have commercial aircraft operator permit
• ✅ Revenue Generation: Aircraft used for paid passenger/cargo transport
• ✅ Charter Services: Licensed charter operators offering rental services
• ✅ Air Ambulance: Emergency medical evacuation services
• ✅ Corporate Shuttles: Company-owned aircraft for employee transport (if regular schedule)

Typical Commercial Aircraft Costs (5% GST):

• ✈️ Boeing 737-800: Rs 450 crore base + Rs 22.5 crore GST = Rs 472.5 crore total
• ✈️ Airbus A320neo: Rs 500 crore base + Rs 25 crore GST = Rs 525 crore total
• ✈️ ATR 72-600 (Regional): Rs 150 crore base + Rs 7.5 crore GST = Rs 157.5 crore total
• 🚁 Airbus H125 Helicopter: Rs 10 crore base + Rs 50 lakh GST = Rs 10.5 crore total

ITC for Airlines & Operators:

• ✅ Commercial Airlines: Can claim 5% ITC on aircraft purchase (used for taxable passenger services at 5%/18%)
• ✅ Charter Operators: Full ITC available on aircraft (charter service is 18% GST, can claim 5% input credit)
• ✅ Cargo Operators: Full ITC on aircraft used for goods transport
• 💰 Effective Cost: Rs 100 crore aircraft + Rs 5 crore GST paid, Rs 5 crore ITC claimed = Rs 100 crore net cost

Answer: Personal aircraft (private jets, personal helicopters) attract 40% GST FLAT - MAJOR INCREASE from 28%+3%=31% (effective September 22, 2025)!

Personal vs Commercial Aircraft - Tax Comparison:

Aircraft Example	Base Price	Commercial (5%)	Personal (40%)	Difference
Light Helicopter (Robinson R44)	Rs 4 Cr	Rs 4.2 Cr (5%)	Rs 5.6 Cr (40%)	Rs 1.4 Cr MORE
Business Jet (Cessna Citation CJ3)	Rs 50 Cr	Rs 52.5 Cr (5%)	Rs 70 Cr (40%)	Rs 17.5 Cr MORE
Large Business Jet (Gulfstream G650)	Rs 400 Cr	Rs 420 Cr (5%)	Rs 560 Cr (40%)	Rs 140 Cr MORE!

Why GST Increased to 40% (September 2025)?

• 💎 Ultra-Luxury Crackdown: Target ultra-rich consumption (only ~200 personal jets in India)
• ⚖️ Progressive Taxation: Higher tax on extreme luxury (billionaire-level wealth items)
• 🏛️ Revenue Generation: Rs 400 Cr jet = Rs 160 Cr GST at 40% (vs Rs 124 Cr at old 31%)
• 🌍 Environmental Policy: Discourage private jet use (10X carbon footprint vs commercial)
• 📊 GST 2.0 Simplification: Removed cess system, unified to flat 40% rate

What Defines "Personal Use" Aircraft?

• ❌ No Commercial License: Aircraft not registered for commercial operations
• ❌ No Revenue Generation: Owner uses for personal travel, not for hire
• ❌ Private Category: DGCA registration in "Private" category (not "Scheduled"/"Non-Scheduled")
• ❌ Exclusive Personal Use: Family travel, business meetings (own company), leisure

Who Buys Personal Aircraft in India (40% GST payers)?

• 💼 Ultra-Rich Industrialists: Mukesh Ambani, Gautam Adani, Ratan Tata families
• 🎬 Top Celebrities: Shah Rukh Khan, Ajay Devgn (helicopter owners)
• 👑 Royalty: Former maharajas, royal families
• 💰 Net Worth Required: Typically Rs 2,000+ crore net worth to afford personal jet + 40% tax

Can Personal Aircraft Claim ITC?

• ❌ NO ITC: Personal use aircraft cannot claim ITC (not used for taxable business)
• ❌ Full 40% Tax Burden: Buyer pays 40% upfront, cannot recover
• ⚠️ Mixed Use Risk: If declared "commercial" but used personally, tax authorities demand 40% + penalties

Impact of September 2025 Increase (31% → 40%):

• 📊 Gulfstream G650 (Rs 400 Cr): Old tax Rs 124 Cr (31%) → New tax Rs 160 Cr (40%) = Rs 36 Cr MORE!
• 📊 Bombardier Global 7500 (Rs 350 Cr): Old tax Rs 108.5 Cr → New tax Rs 140 Cr = Rs 31.5 Cr MORE!
• 📊 Light Jet (Rs 50 Cr): Old tax Rs 15.5 Cr → New tax Rs 20 Cr = Rs 4.5 Cr MORE!

Answer: ALL aircraft parts attract UNIFORM 5% GST (HSN 8803) - MAJOR REFORM implemented July 2024 (earlier was mixed 5%/12%/18%/28%).

Complete Aircraft Parts GST Rates (Unified 5%):

Part Category	HSN Code	Old GST (Pre-July 2024)	New GST (Post-July 2024)
Aircraft Engines (all types)	8803 30 00	5%/28% (confused)	5% uniform
Propellers & Rotor Blades	8803 10 00	12%/18%	5%
Landing Gear & Undercarriage	8803 20 00	18%	5%
Avionics & Navigation Systems	8803 30 00	18%	5%
Wings, Fuselage, Tail Sections	8803 30 00	5%/18%	5%
Aircraft Seats & Interiors	8803 30 00	18%	5%

Major Benefits of Unified 5% GST on Parts:

• ✈️ MRO Industry Boost: India aims to become global MRO (Maintenance, Repair, Overhaul) hub
• 💰 Cost Reduction: Airline maintenance costs reduced by 10-13% (parts were 18%, now 5%)
• 📋 Classification Clarity: No more disputes on part classification (ALL 5% now)
• 🌍 Global Competitiveness: Indian MRO centers now compete with Singapore, Dubai, Malaysia
• 🏭 Manufacturing Push: Encourages aircraft component manufacturing in India (Make in India)

Real Cost Impact - Aircraft Maintenance Example:

• 🔧 C-Check Maintenance (Boeing 737): Rs 10 crore parts required
• → Old System (Mixed rates): Rs 10 Cr + Rs 1.5 Cr GST (avg 15%) = Rs 11.5 Cr
• → New System (5% uniform): Rs 10 Cr + Rs 50 Lakh GST = Rs 10.5 Cr
• → Savings: Rs 1 crore per C-check = MASSIVE savings for airlines!

ITC for Aircraft Parts:

• ✅ Airlines: Full 5% ITC on spare parts (used for taxable passenger services 5%/18%)
• ✅ MRO Centers: Can claim 5% ITC on parts purchased (if providing taxable MRO services)
• ✅ Aircraft Manufacturers: ITC on parts used in aircraft assembly
• 💰 Effective Cost: Parts cost GST-neutral for commercial operators (full ITC recovery)

India's MRO Industry Growth Post-Reform:

• 📈 Market Size: Rs 2,500 crore (2023) → Projected Rs 10,000 crore (2030)
• 🏭 MRO Centers: Air India Engineering, GMR Aero Technic, Air Works expanding
• 🌍 Foreign Airlines: Now sending aircraft to India for maintenance (cost competitive)
• 💼 Employment: 15,000+ jobs in MRO sector (expected 50,000+ by 2030)

Answer: ALL drones/UAVs attract UNIFORM 5% GST (HSN 8806 21) - MAJOR REDUCTION from 18%/28% implemented September 2025!

Drone GST Rate History (Major Reform):

Drone Type	Pre-Sept 2025	Post-Sept 2025	Reduction
Agricultural Drones	18% GST	5% GST	13% reduction
Commercial Drones (delivery, surveying)	18% GST	5% GST	13% reduction
Camera Drones (DJI, etc.)	28% GST (luxury)	5% GST	23% reduction!
Toy Drones (budget)	12%/18% GST	5% GST	7-13% reduction

Why Government Reduced Drone GST to 5%?

• 🚁 Drone Revolution: Government targets 1 lakh operational drones by 2030
• 🌾 Agricultural Transformation: Make agri-drones affordable for farmers (crop spraying, monitoring)
• 📦 Logistics Innovation: Support drone delivery pilots (Zomato, Swiggy, Dunzo, Amazon)
• 🎥 Content Creation: Support YouTubers, filmmakers using camera drones
• 🏭 Manufacturing Boost: Encourage domestic drone manufacturing (Make in India)
• ⚖️ Classification Simplification: Eliminates "commercial vs personal" debate (all 5%)

Drone Cost Impact - Before vs After Sept 2025:

• 🌾 Agricultural Drone (10L spray capacity): Rs 5 lakh base
• → Old (18%): Rs 5L + Rs 90,000 GST = Rs 5.9L total
• → New (5%): Rs 5L + Rs 25,000 GST = Rs 5.25L total
• → Farmer Saves: Rs 65,000 per drone (11% cheaper!)
• 🎥 DJI Mavic 3 Pro (camera drone): Rs 2 lakh base
• → Old (28% luxury): Rs 2L + Rs 56,000 GST = Rs 2.56L total
• → New (5%): Rs 2L + Rs 10,000 GST = Rs 2.10L total
• → Creator Saves: Rs 46,000 (18% cheaper!)
• 📦 Delivery Drone (5kg payload): Rs 3 lakh base
• → Old (18%): Rs 3L + Rs 54,000 GST = Rs 3.54L total
• → New (5%): Rs 3L + Rs 15,000 GST = Rs 3.15L total
• → Company Saves: Rs 39,000 per drone

India's Drone Market Explosion (Post-5% GST):

• 📈 Market Growth: Rs 1,200 crore (2025) → Expected Rs 5,000+ crore (2030)
• 🌾 Agricultural Adoption: 5,000+ agri-drones deployed (2025) vs 500 (2023) = 10X growth!
• 📦 Delivery Networks: 50+ cities with drone delivery experiments (medicine, food, parcels)
• 🏭 Startups: 200+ drone startups, 50+ manufacturers (ideaForge, Garuda, Asteria, Throttle Aerospace)
• 💼 Employment: 10,000+ jobs in drone sector (pilots, technicians, software engineers)

Answer: Spacecraft, satellites, and launch vehicles attract 0% GST (NIL rate) - UNCHANGED as strategic national security sector.

Complete Spacecraft GST Rates:

Spacecraft Type	HSN Code	GST Rate	Examples
Communication Satellites	8802 60 10	0% (Nil)	INSAT series, GSAT series
Earth Observation Satellites	8802 60 10	0% (Nil)	Cartosat, Resourcesat, Oceansat
Navigation Satellites	8802 60 10	0% (Nil)	NavIC (IRNSS) constellation
Space Launch Vehicles	8802 60 10	0% (Nil)	PSLV, GSLV Mark II, GSLV Mark III
Lunar/Planetary Probes	8802 60 10	0% (Nil)	Chandrayaan, Mangalyaan
Spacecraft Parts	8803 90 00	5%	Satellite components, launch vehicle parts

Why 0% GST on Spacecraft?

• 🛰️ National Security: Space assets critical for defense, surveillance, communication
• 🏛️ ISRO Support: Reduce costs for India's space program (limited budget, ambitious goals)
• 🌍 Strategic Autonomy: India needs independent space capabilities
• 📡 Critical Infrastructure: Satellites essential for telecom, TV, internet, navigation, weather
• 💰 Cost Efficiency: Space missions extremely expensive, 0% GST keeps projects viable

Financial Impact - Satellite Mission Cost Saving:

• 🛰️ Communication Satellite (GSAT): Rs 200 crore cost
• → If 18% GST: Rs 200 Cr + Rs 36 Cr = Rs 236 Cr total
• → With 0% GST: Rs 200 Cr only
• → Savings: Rs 36 crore per satellite = Can launch 1 extra satellite per 5 missions!
• 🚀 Launch Vehicle (PSLV): Rs 300 crore cost
• → If 18% GST: Rs 300 Cr + Rs 54 Cr = Rs 354 Cr total
• → With 0% GST: Rs 300 Cr only
• → Savings: Rs 54 crore per launch

ISRO Programs Benefiting from 0% GST:

• 🛰️ Communication Satellites: INSAT/GSAT series (DTH, broadband, disaster) - 0% GST
• 🌍 Earth Observation: Cartosat (mapping), Resourcesat (agriculture) - 0% GST
• 📍 Navigation: NavIC constellation (Indian GPS alternative) - 0% GST
• 🌕 Lunar Missions: Chandrayaan-3 (lunar landing), Chandrayaan-4 (sample return) - 0% GST
• 🚀 Human Spaceflight: Gaganyaan program (first Indian astronauts) - 0% GST

Important Distinction:

• ✅ Complete Spacecraft/Satellites: 0% GST (HSN 8802 60 10)
• ⚠️ Spacecraft Parts/Components: 5% GST (HSN 8803 90 00)
• 📋 Example: Complete satellite = 0%, but satellite's solar panels sold separately = 5%

Answer: Aircraft GST rate (5% vs 40%) is determined by INTENDED USE (commercial vs personal), NOT the aircraft model itself. Buyer must declare use at purchase, backed by DGCA registration category.

Commercial Use (5% GST) - Qualification Criteria:

Criteria	Requirements	Verification
DGCA License	Commercial operator permit (Scheduled/Non-Scheduled)	DGCA registration certificate
Revenue Generation	Aircraft used for paid transport (passengers/cargo)	Charter agreements, ticket sales records
Business Purpose	Charter services, air taxi, air ambulance, training	Business registration, service contracts
Regular Operations	Consistent commercial use (not occasional)	Flight logs, passenger manifests

Personal Use (40% GST) - Classification Criteria:

Criteria	Indicators	Examples
DGCA Registration	"Private" category registration	Individual owner, non-commercial permit
Usage Pattern	Owner/family travel only, no paying passengers	Vacations, personal meetings, convenience
No Revenue	Aircraft never used for hire/charter	Purely personal transportation
Luxury Status	Ultra-rich individual ownership	Billionaire's personal jet

Step-by-Step: How to Determine GST Rate at Purchase

• 📋 Step 1: Buyer declares intended use on purchase invoice ("Commercial" or "Personal")
• 📋 Step 2: Seller applies corresponding GST rate (5% commercial, 40% personal)
• 📋 Step 3: Buyer obtains DGCA registration matching declared use
• 📋 Step 4: GST authorities verify DGCA registration category matches declared use
• 📋 Step 5: Ongoing compliance - usage pattern must match declared category

Gray Areas & Common Disputes:

• ⚠️ Corporate Aircraft: Company buys jet for "business use" but CEO uses for personal vacations
• → Resolution: If >50% personal use, authorities can demand 40% rate
• ⚠️ Mixed Use: Aircraft used for both charter (commercial) and owner's personal trips
• → Resolution: Proportionate GST (based on flight hours: commercial vs personal)
• ⚠️ Future Change: Bought as "commercial" but later stopped operations, now personal
• → Resolution: Must pay differential GST (40% minus 5%) when use changes

Penalties for Misclassification:

• 💰 Tax Demand: Pay differential GST (40% minus 5% already paid) on aircraft value
• 💰 Interest: 18% annual interest from date of purchase till payment
• 💰 Penalty: 100% of tax demand (can be reduced to 50% if voluntary disclosure)
• 📋 Example: Rs 100 Cr aircraft bought as "commercial" (paid Rs 5 Cr GST)
• → Found personal use → Pay Rs 35 Cr more (40% - 5%) + Rs 14 Cr interest (2 years) + Rs 35 Cr penalty = Rs 84 Cr additional liability!

Answer: Aircraft charter services attract 18% GST (service classification SAC 996603) - This is the GST on SERVICE, not the aircraft itself.

Aircraft Services GST Rates (Comprehensive):

Service Type	GST Rate	SAC Code	Examples
Private Jet Charter Service	18%	996603	Renting entire jet for specific journey
Helicopter Charter (Personal/Tourist)	18%	996603	Wedding helicopter rides, sightseeing, joy rides
Helicopter Emergency/Medical Service	5%	996611	Air ambulance, emergency evacuation (w.e.f. Oct 2024)
Aircraft Operational Lease	5%	997212	Airlines leasing aircraft (long-term, wet/dry lease)
Commercial Air Tickets (Economy)	5%	996411	Scheduled airline economy class (domestic)
Commercial Air Tickets (Business)	18%	996411	Business class (INCREASED Sept 2025, was 12%)
International Air Tickets	0% (Exempt)	996411	All international flights departing India
Aircraft MRO Services	5%	998571	Maintenance, Repair, Overhaul services

Business Class GST Increase (September 2025):

• ✈️ Old Rate: 12% GST on business class domestic flights
• ✈️ New Rate: 18% GST (w.e.f. Sept 22, 2025)
• 💰 Impact: Mumbai-Delhi business class Rs 15,000 ticket
• → Old: Rs 15K + Rs 1,800 GST (12%) = Rs 16,800 total
• → New: Rs 15K + Rs 2,700 GST (18%) = Rs 17,700 total
• → Increase: Rs 900 per ticket (5% more expensive)
• 📊 Rationale: Luxury travel taxation - business class is premium segment

Private Jet Charter Cost Breakdown (18% GST):

• ✈️ Mumbai-Delhi Charter (Light Jet - Cessna Citation CJ2): Base Rs 8 lakh
• → Charter Service GST (18%): Rs 1.44 lakh
• → Total Cost: Rs 9.44 lakh
• ✈️ Mumbai-London Charter (Heavy Jet - Gulfstream G550): Base Rs 1.5 crore
• → Charter Service GST (18%): Rs 27 lakh
• → Total Cost: Rs 1.77 crore

Emergency Helicopter Service (5% GST - Reduced Oct 2024):

• 🚑 Air Ambulance (Mumbai-Delhi): Base Rs 5 lakh + 5% GST Rs 25,000 = Rs 5.25 lakh total
• 🚑 Medical Evacuation (Accident site to hospital): Base Rs 1 lakh + 5% GST Rs 5,000 = Rs 1.05 lakh total
• ✅ Reform: Emergency helicopter rides reduced from 18% to 5% (Oct 2024) to make medical services affordable

Answer: Yes, airlines and charter operators can claim ITC on aircraft (5% GST) and parts (5% GST) as these are used for taxable services (passenger/charter at 5%/18% GST).

✅ ITC Available (Common Scenarios):

• ✈️ Commercial Airlines: Full 5% ITC on aircraft purchase (used for taxable passenger services at 5%/18% GST)
• ✈️ Aircraft Parts ITC: Full 5% ITC on spare parts, engines, avionics (used for taxable operations)
• 🚁 Charter Operators: Full 5% ITC on helicopters/jets (charter service is 18% GST, can claim 5% input)
• 🔧 MRO Centers: ITC on aircraft parts purchased (if providing taxable MRO services at 5% GST)
• 🏭 Aircraft Manufacturers: ITC on parts/components used in manufacturing aircraft for sale

❌ ITC Restricted/Blocked (Scenarios):

• ❌ Personal Aircraft Owners: Cannot claim ITC (aircraft used for personal consumption, not business)
• ❌ International Flights: Airlines have limited ITC on aircraft used for international routes (0% GST output)
• 📋 Rule: ITC proportionate - If aircraft used 70% domestic (taxable) + 30% international (exempt), claim only 70% ITC

ITC Calculation Examples:

Entity	Purchase	Amount Paid	ITC Claim	Net Cost
IndiGo (Airline)	Airbus A320neo (5%)	Rs 500 Cr + Rs 25 Cr = Rs 525 Cr	Rs 25 Cr	Rs 500 Cr
Air India	Boeing 787 engines (5%)	Rs 100 Cr + Rs 5 Cr = Rs 105 Cr	Rs 5 Cr	Rs 100 Cr
Charter Company	Gulfstream G650 (5%)	Rs 400 Cr + Rs 20 Cr = Rs 420 Cr	Rs 20 Cr	Rs 400 Cr

Charter Operator ITC Benefits:

• 💼 Charter Service Output: 18% GST on charter fees collected
• ✈️ Aircraft Input: 5% GST paid on aircraft purchase
• ✅ Full ITC: Can claim entire 5% input credit against 18% output liability
• 💰 Example: Buy aircraft Rs 100 Cr (pay Rs 5 Cr GST) → Earn Rs 10 Cr charter revenue (collect Rs 1.8 Cr GST)
• → GST Payable: Rs 1.8 Cr collected - Rs 5 Cr ITC = No GST payable (carry forward Rs 3.2 Cr credit)

Answer: Aircraft transactions require extensive GST documentation due to high value and dual rate structure (5% vs 40%). Proper documentation is CRITICAL to avoid disputes and penalties.

Essential Documentation - Aircraft Purchase:

• 📋 Purchase Invoice: Must clearly mention aircraft details (make, model, serial number, registration)
• 📋 Use Declaration: Written declaration from buyer stating "Commercial Use" or "Personal Use"
• 📋 GST Invoice: Seller must issue GST-compliant invoice with correct rate (5% or 40%)
• 📋 Payment Proof: Bank transfer proof (aircraft purchases >Rs 2 lakh must be cashless)
• 📋 Import Documents (if imported): Bill of Entry, Customs duty payment, GST on import

DGCA Registration Documents (Critical for GST Verification):

• 📋 Certificate of Registration: DGCA certificate showing aircraft registration number (VT-XXX)
• 📋 Registration Category: Must show "Scheduled"/"Non-Scheduled" (commercial) OR "Private" (personal)
• 📋 Operator Permit: If commercial, DGCA commercial operator permit (Air Operator Certificate)
• 📋 Airworthiness Certificate: DGCA certificate of airworthiness (mandatory for all aircraft)

Ongoing Compliance Documents (Commercial Aircraft):

• 📋 Flight Logs: Maintain detailed flight logs (date, route, passengers, purpose)
• 📋 Charter Agreements: If charter operator, keep all charter contracts/agreements
• 📋 Revenue Records: Passenger bookings, ticket sales, charter fees collected
• 📋 GST Returns: File GSTR-1 (sales), GSTR-3B (summary), claim ITC properly

Red Flags That Trigger Audit:

• 🚨 Mismatch: Purchase invoice says "commercial" but DGCA registration is "private"
• 🚨 No Revenue: Declared commercial but no charter income/passenger bookings in GST returns
• 🚨 ITC Claimed: Claimed ITC on aircraft but output supplies are exempt/nil
• 🚨 Personal Use Pattern: Flight logs show 90%+ flights to owner's vacation destinations
• 🚨 High Value: All aircraft purchases >Rs 50 crore automatically flagged for verification

Answer: India's aviation sector saw FOUR MAJOR GST reforms (July 2024 - Sept 2025): Unified 5% on aircraft parts, 5% uniform on drones, 5% on emergency helicopter rides, and 40% on personal aircraft!

Timeline of Major Aviation GST Reforms:

Reform Date	What Changed	Impact
July 2024	Aircraft Parts Unified to 5% GST	MRO industry boost, 13% cost reduction
October 2024	Emergency Helicopter Rides reduced to 5%	Air ambulance services more affordable
September 2025	All Drones unified to 5% GST	Drone revolution, 23% reduction
September 2025	Personal Aircraft increased to 40% GST	Ultra-luxury taxation, 9% increase
September 2025	Business Class Tickets increased to 18%	Luxury travel taxation, 6% increase

Reform 1: Aircraft Parts Unification (July 2024)

• ❌ Problem: Aircraft parts had 5%/12%/18%/28% rates (classification confusion)
• ✅ Solution: ALL aircraft parts unified to 5% GST
• 💰 Impact: MRO costs reduced 10-13%, India competitive with Singapore/Dubai
• 📈 Result: MRO market Rs 2,500 Cr (2023) → Projected Rs 10,000 Cr (2030)

Reform 2: Drone GST Reduction (September 2025)

• ❌ Problem: Drones had 18%/28% rates (camera drones very expensive)
• ✅ Solution: ALL drones unified to 5% GST
• 💰 Impact: Camera drones 23% cheaper (DJI Mavic was Rs 2.56L, now Rs 2.10L)
• 📈 Result: Drone market explosion - 5,000+ agri-drones deployed (vs 500 in 2023)

Reform 3: Personal Aircraft Tax Increase (September 2025)

• ❌ Old: 28% + 3% Cess = 31% total on personal aircraft
• ✅ New: 40% GST flat (ultra-luxury crackdown)
• 💰 Impact: Gulfstream G650 (Rs 400 Cr) → Extra Rs 36 Cr tax burden!
• 📈 Result: Target ultra-rich, revenue generation (only ~200 personal jets in India)

Reform 4: Business Class Tax Increase (September 2025)

• ❌ Old: 12% GST on business class tickets
• ✅ New: 18% GST (luxury travel taxation)
• 💰 Impact: Mumbai-Delhi business ticket Rs 900 more expensive
• 📈 Result: Higher tax on premium travel segment

Cumulative Impact on Aviation Ecosystem:

• 📈 MRO Industry: Rs 2,500 Cr (2023) → Rs 4,000 Cr (2026) - 60% growth
• 📈 Drone Market: Rs 400 Cr (2024) → Rs 1,200 Cr (2025) - 200% growth!
• 📈 Air Ambulance: 2,000/year (2023) → 2,800/year (2025) - 40% increase
• 💰 Luxury Tax Revenue: Rs 500+ Cr additional from personal aircraft/business class increases