The goods and services tax (GST) Council has announced that GST exemption on satellite launch services supplied by Indian Space Research Organisation (ISRO), Antrix Corporation Limited and New Space India Limited (NSIL) may be extended to such services supplied by organisations in the private sector to encourage start-ups.
Finance Minister Nirmala Sitharaman chaired the GST Council meeting in New Delhi in the presence of Pankaj Chaudhary, Minister of State for Finance; Sanjay Malhotra, secretary in Department of Revenue; Vivek Johri, chairman, Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, among others.
Industry reactions:
Commenting on the development, Lt. Gen. AK Bhatt (retd.), director general, Indian Space Association (ISpA), said, “We welcome the decision of Finance Minister Nirmala Sitharaman to exempt GST on satellite launch services by private organisations. This step will give financial relief to the players and will incentivise growth of this nascent sector. This was one of our pre-budget recommendations and we believe it will help enable the growth of indigenous launch capabilities and ensure a level playing field for all. The satellite launch segment has become a key focus area for Indian startups and small and medium enterprises (SMEs), driving innovation and seeking new revenue opportunities. According to the ISpA-EY report, the space launch segment is expected to grow rapidly by 2025, with a CAGR of 13 per cent, which will be fueled by increased private participation, advanced technology adoption, and cost-effective launch services.”
