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GST Council likely to fix uniform 5% tax on all commercial drones: Report

  • The GST Council is expected to propose a uniform 5% GST rate on all commercial-use drones to eliminate classification ambiguities and provide clarity to the industry, as reported by Business Standard.
  • Currently, drones face varying GST rates based on their classification, with business-use drones taxed at 5%, camera-equipped drones at 18%, and personal-use drones at 28%, leading to confusion and calls for a streamlined taxation model.
  • The Indian government is promoting drone usage across sectors like agriculture and logistics by relaxing regulations and introducing initiatives, while industry experts advocate for classifying drones based on their primary function rather than additional features.

Source A2ztaxcorp

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