GST Council Meeting Enhances Air Connectivity in Northeast India
Significant GST Exemption for Helicopter Services
57th GST Council meeting
New Delhi, Oct 9: The 57th GST Council meeting held in New Delhi has made a pivotal recommendation to exempt Goods and Services Tax (GST) on helicopter passenger transport on a seat-sharing basis to and from airports and helipads in the northeastern states, Sikkim, and Bagdogra in West Bengal.
This decision, led by Union Finance Minister Nirmala Sitharaman, aims to enhance the affordability of helicopter services and improve access to remote regions that are often hard to reach.
The exemption specifically targets helicopter services where passengers share seats, which is crucial for the Northeast, where challenging landscapes and poor surface connectivity have historically hindered travel between remote locations and urban centers.
This move by the GST Council aligns with the government's ongoing efforts to bolster connectivity and economic integration in the northeastern states. Helicopter services are vital for linking areas where traditional road, rail, and fixed-wing air transport may be limited or impractical.
Assam's Finance Minister Jayanta Mallabaruah, who attended the GST Council meeting, emphasized the importance of the Council as a platform for cooperative federalism. He stated, “The GST Council is essential for fostering cooperative federalism, uniting the Centre and States to enhance India’s tax system and promote economic development.”