GST Council Slashes Rates on Helicopter Pilgrimage Travel

The GST Council has approved reducing the GST rate on helicopter travel to pilgrimage sites from 18 percent to 5 percent. This decision comes following the 54th meeting of the Council, chaired by Union Finance Minister Nirmala Sitharaman, and was pushed forward by Uttarakhand Finance Minister Prem Chand Agarwal.

Helicopter travel to pilgrimage sites is set to become more affordable. The GST Council on Monday decided to slash GST on this mode of travel. According to Uttarakhand Finance Minister Prem Chand Agarwal, the Council accepted their demand, cutting the tax rate from 18 percent to 5 percent.

'We demanded that the GST rate on travel to pilgrimage places by helicopter services should be brought down from 18 percent to 5 percent. Council has accepted our demand,' the Uttarakhand minister said. He added that the effective date for the reduced GST on helicopter services will be announced through a notification.

Regarding GST on research grants received by educational institutions, Agarwal mentioned that the issue has been forwarded to the fitment committee. Similarly, the matter of online payments through gateways has also been sent to the fitment committee.

The 54th meeting of the Goods and Services Tax (GST) Council was held today under the chairmanship of Union Finance Minister Nirmala Sitharaman in New Delhi. The decisions taken will be announced later in the day.

The GST Council, which comprises the Union Finance Minister and representatives from all States and Union Territories, was established to make decisions on various GST aspects, including tax rates, exemptions, and administrative procedures. Their last meeting took place on June 22, 2024.

The GST regime has streamlined compliance and lessened the cascading effect of tax, replacing a fragmented system where the Centre and States separately taxed goods and services before July 1, 2017.

(With inputs from agencies.)