GST on Helicopters in India: Rates, HSN Code, ITC & Aviation Impact

Navigating GST on helicopters in India involves understanding layered regulations around acquisition, services, imports, and operational compliance. This article explores the GST on helicopter purchase in India and its implications on the aviation ecosystem.

GST on Helicopter Purchase in India

Purchasing a helicopter in India attracts a GST on helicopter purchase rate of 5% under HSN 8802 for non‑personal use aircraft. When intended for private use, this is treated as a luxury good, and a higher rate of 28% plus a 3% compensation cess applies. Thus, GST on private helicopters is a substantial cost consideration under current tax norms.

GST on Helicopter Services in India

Helicopter charter services in India are typically taxed at 18% GST—the same as non-economy class air travel. However, if operated under a shared seat or pilgrim‑tourist travel model, passenger transport by helicopter is eligible for a reduced GST rate of 5%.

GST on Imported Helicopters

Imported helicopters fall under 5% IGST on aircraft and engine parts, per the uniform policy effective since July 2024. This policy applies to helicopter imports as well, aligning helicopter import duties India with the aviation sector's broader tax rationalisation. India’s aircraft fleet is projected to rise from around 700 to over 1,500 by 2030. 

GST Rates on Helicopter

The applicable helicopter GST rate depends on the use case:

• Commercial: 5% on purchase/import, 18% on charter services
• Personal: 28% + 3% cess on acquisition; no Input Tax Credit (ITC)

HSN Code on Helicopter

Under Chapter 88, aircraft, including helicopters, are classed under HSN numbers 8802. HSN 8802 taxes non-personal helicopters at 5%, whereas private helicopters are taxed at 28% plus a 3% cess.

Availability of Input Tax Credit (ITC)

ITC for aviation GST in India is authorised when helicopters are utilised for commercial or charter activities, which helps to offset the GST burden. The ITC is not available for personal usage, raising the effective tax burden on private owners.

Key Considerations and Documentation Requirements

• Calculate the accurate GST rate and ITC eligibility by separating commercial and personal use.
• Proper invoicing with HSN 8802 is critical for claiming ITC.
• Customs duty and cess are added to the 5% Customs IGST that applies to imports.
• SAC rules for air transport services, including service agreements, accurate billing, and GST compliance, must be adhered to by helicopter charters.

Impact on the Aviation Sector

The Maintenance, Repair, and Overhaul (MRO) sector benefits from the standard 5% IGST on aviation parts, including helicopters, which streamlines operations. According to estimates, tax consolidation is expected to boost the MRO business to $4 billion by 2030.

The GST on helicopter purchase in India is 28% + cess for individual usage and 5% for commercial use.  Imports are subject to a 5% IGST. ITC is permitted for commercial usage, hence facilitating aviation sector compliance.