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India Sets Uniform 5% GST on All Drones, Exempts Flight Simulators From Tax

The GST 2.0 change seeks to cut user costs by removing classification disputes.

Overview

  • The new rate covers every drone configuration and use-case, including models with integrated or separate cameras and both personal and commercial use.
  • The revision takes effect on 22 September 2025 under the two-slab GST reform that sets rates at 5% and 18%.
  • Previously, many drones faced 18% GST and some personal-use models were taxed at 28%, which raised prices and led to disputes.
  • Flight and motion simulators used for pilot training are now exempt from GST, reducing costs for airlines and training academies.
  • The Civil Aviation Ministry projects wider deployment in agriculture, logistics, infrastructure, petroleum, mining and defence, with job creation in manufacturing, software, data analytics and field operations.