GST on drones: Fitment panel suggestion may reduce litigation

Currently, drones attract different GST rates depending on their classification under various HSN (Harmonized System Nomenclature) codes.

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Drones for business use, categorized as aircraft under HSN code 8806, attract 5 per cent GST, while those with integrated cameras are taxed at 18 per cent under HSN 8525, as they are classified as digital cameras. Drones meant for personal use fall under HSN 8806 but are taxed at a much higher rate of 28 per cent.

The government has taken some initiatives in the recent past to promote the use of drones in diverse sectors, such as agriculture, logistics, public safety, and construction. For instance, drones were allowed to be operated in green zones (airspace up to a vertical distance of 400 ft that has not been designated as a red or a yellow zone) without seeking permission.