Relief for IndiGo: HC strikes down IGST on aircraft repairs

In a relief for aviation companies, including IndiGo, the Delhi high court on Tuesday struck down the Integrated Goods and Services Tax (IGST) levy on the repair cost of goods re-imported into India after being sent abroad for maintenance.

- Krishna Yadav

NEW DELHI:

The court declared as unconstitutional a part of the 2021 customs department exemption notification that required payment of IGST and cess on the repair cost of such goods.

The court's decision came in response to a petition filed by InterGlobe Aviation, the parent company of India's largest airline, IndiGo, in 2023, challenging the notification and the IGST levy on re-imported aircraft and parts following repairs.

The airline argued that it had already paid import duties on overseas repairs as part of import of services and should not be taxed again upon re-import of the repaired aircraft parts.