Overview
- A uniform 5% GST will apply to all drones regardless of configuration or use, replacing earlier rates of 18% for many models and 28% for personal-use units.
- The new rate takes effect on September 22, 2025 within the broader GST rationalisation approved by the 56th GST Council.
- Civil Aviation Minister Ram Mohan Naidu said the move provides policy certainty by ending classification disputes and should expand use across agriculture, infrastructure, logistics, mining, petroleum and security.
- Flight and motion simulators used for pilot and drone-operator training have been exempted from GST to cut training costs for airlines and academies.
- Brokerage Nomura said the lower indirect tax burden should aid defence procurement, support indigenous assembly and reduce reliance on higher-cost imports.