## Report on Ministry of Civil Aviation Notification Regarding RCS-UDAN Scheme
**1. Executive Summary:**
This report analyzes a notification from the Ministry of Civil Aviation, Government of India, dated October 4th, 2022. This notification concerns the Regional Connectivity Scheme - Ude Desh Ka Aam Nagrik (RCS-UDAN) scheme. The core purpose is to notify the dates of commencement of RCS routes for specific RCS airports, which directly relates to eligibility for certain tax benefits and exemptions outlined in earlier notifications from the Ministry of Finance regarding Central Tax Rate and Central Excise. The key finding is that this notification activates or maintains existing financial incentives for airlines operating on newly commenced or existing RCS routes.
**2. Introduction:**
This report provides an overview and analysis of the Ministry of Civil Aviation's notification G.S.R. 773(E), dated October 4th, 2022, pertaining to the RCS-UDAN scheme. The analysis focuses solely on the information provided within the notification text. The purpose is to inform affected industry stakeholders about the implications of this notification.
**3. Policy Overview:**
This notification is an amendment/update to existing policies related to tax benefits and exemptions for RCS-UDAN flights. The core objective, inferred from the text, is to facilitate the operationalization of the RCS-UDAN scheme by clarifying the commencement dates of specific routes, thereby triggering/sustaining eligibility for associated financial incentives.
**4. Background and Rationale:**
The provided text suggests the need for clear definitions of "commencement of operations" for RCS routes. This clarity is essential because the Ministry of Finance has linked tax benefits (Excise Duty on Aviation Turbine Fuel and GST exemption on Viability Gap Funding) to these commencement dates. The notification likely aims to remove ambiguity and ensure consistent application of tax policies to promote regional air connectivity. Without this clarification, operators would be unsure of their eligibility for tax benefits, which the RCS-UDAN scheme depends on to remain operational.
**5. Key Provisions / Changes:**
This notification specifically lists the "dates of commencement of RCS routes" for particular airports. It references earlier Ministry of Finance notifications (112017, 072019 Central Excise, 122017, and 218 Central Tax Rate) that grant tax benefits. The key provision is a table specifying the following:
* **Column 1:** Name of RCS Airport with RCS route (e.g., ALMORA Uttarakhand - PANTNAGAR Uttarakhand, etc.).
* **Column 2:** Date of Commencement of operations under RCS UDAN (e.g., 26082022).
This means that the date in the second column is the official date used to determine eligibility for the aforementioned tax benefits for each listed route. The *effect* of this notification is to trigger or maintain the eligibility for financial incentives associated with operating these RCS routes, based on the stated commencement date.
**6. Target Audience and Stakeholders:**
The primary target audience consists of:
* Scheduled Airline Operators (SAOs) operating RCS-UDAN flights.
* Cargo operators using Aviation Turbine Fuel for RCS-UDAN flights from designated airports/heliports/water aerodromes.
* RCS Airport/Heliport/Water Aerodrome authorities.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** Ministry of Civil Aviation (issuing the notification). The Ministry of Finance is involved through the earlier notifications regarding tax benefits.
* **Timelines:** The notification directly impacts the eligibility for tax benefits within the three-year window specified in the referenced Ministry of Finance notifications following the specified commencement dates. The dates provided, from August and September 2022, serve as the reference point.
* SAOs must track and provide the official commencement dates of their RCS routes, as listed in this notification, to claim the relevant tax benefits.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of this notification is to ensure that SAOs operating RCS-UDAN flights on the listed routes receive the intended financial benefits (reduced Excise Duty and GST exemption). This, in turn, should encourage continued operation and potentially expansion of RCS-UDAN services. This is anticipated to incentivize airlines to commence or continue operating on RCS routes, improving regional air connectivity and fulfilling the broader objectives of the UDAN scheme.
**9. Conclusion:**
The Ministry of Civil Aviation's notification clarifies the commencement dates of specific RCS routes, directly impacting the eligibility of airlines for tax benefits under the RCS-UDAN scheme. This notification is crucial for airlines operating on these routes, ensuring the consistent and predictable application of financial incentives, which will hopefully promote regional air connectivity.
Key Entities Referenced
USHA PADHEE: Addl. Secy.
Ministry of Civil Aviation: A governmental organization responsible for civil aviation.
New Delhi: Capital of India, place of notification.
Ministry of Finance: A governmental organization responsible for finance.
Notification No. 122017 Central Tax Rate: A notification related to central tax rates.
Notification No. 719 Central Excise: A notification related to central excise.
Aviation Turbine Fuel: Fuel used in aviation.
SAOS: Aviation term, Scheduled Air Operators
RCS UDAN: Regional Connectivity Scheme (RCS) - Ude Desh ka Aam Naagrik (UDAN) - is a regional airport development and Regional Connectivity Scheme (RCS) of the Government of India
RCS UDAN Airports: Airports that are part of the RCS UDAN scheme.
RCS UDAN Heliports: Heliports that are part of the RCS UDAN scheme.
Water aerodromes: Aerodromes on water that are part of the RCS UDAN scheme.
Notification No. 218 Central Tax Rate: A notification related to central tax rates.
Goods and Service Tax GST: A tax implemented on goods and services.
Viability Gap Funding VGF: Funding provided to bridge the gap between revenue and cost of a project.
ALMORA Uttarakhand: An RCS airport in Uttarakhand.
PANTNAGAR Uttarakhand: An RCS airport in Uttarakhand.
PITHORAGARH Uttarakhand: An RCS airport in Uttarakhand.
JEYPORE Odisha: An RCS airport in Odisha.
BHUBANESHWAR Odisha: A city in Odisha, likely an airport with RCS route.
VISHAKHAPATNAM Andhra Pradesh: A city in Andhra Pradesh, likely an airport with RCS route.
SHIMLA Himachal Pradesh: An RCS airport in Himachal Pradesh.
DELHI: A city, likely an airport with RCS route.
TEZU Arunachal Pradesh: An RCS airport in Arunachal Pradesh.
IMPHAL Manipur: A city in Manipur, likely an airport with RCS route.
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 687] नई दिल्ली, बुधिार, अक्त बू र 12, 2022/आजि न 20, 1944
No. 687] NEW DELHI, WEDNESDAY, OCTOBER 12, 2022/ASVINA 20, 1944
नागर जिमानन मत्रं ालय
अजधसचू ना
नई दिल्ली, 4 अक्त ूबर, 2022
सा.का.जन. 773(अ).— 553(अ) भारत सरकार, जित्त मंत्रालय, ने दिनांक 30.06.2017 की अजधसूचना सख्ं या
12/2017 केंद्रीय कर (िर), और तत्पश्चात दिनांक 22 अगस्ट्त, 2019 की अजधसूचना संख्या 7/19-केंद्रीय उत्पाि िल्ु क के
द्वारा संिोजधत, के तहत जिजनर्िष्टि दकया ह ै दक नागर जिमानन मंत्रालय द्वारा यथा अजधसूजचत आरसीएस हिाईअड्ड े /
हले ीपोर्ि / िार्र एयरोड्रोम के पररचालनों के आरंभ होने की तारीख स े तीन िर् ि की अिजध के जलए आरसीएस उडान
हिाईअड्डों या हले ीपोर्टसि या िार्र एयरोड्रोम स े आरसीएस उडान योिना की उडानों के जलए चयजनत हिाईअड्डा प्रचालकों
(एसएओएस) या कागो प्रचालकों द्वारा आहररत जिमानन र्बािईन ईंधन पर 2 प्रजतित का उत्पाि िुल्क लगाया िाएगा।
इसके अलािा, भारत सरकार, जित्त मंत्रालय ने दिनांक 25.01.2018 की अजधसूचना संख्या 2/18-केंद्रीय कर (िर) के
तहत, समय समय पर नागर जिमानन मंत्रालय द्वारा यथा अजधसूजचत, आरसीएस उडान योिना की उडानों के आरंभ होन े
की जतजथ स े तीन िर् ि की अिजध के जलए आरसीएस – उडान योिना के अतं गति प्रचाजलत होन े िाली उडानों के जलए
चयजनत हिाईअड्डा प्रचालकों को व्यिहायिता अंतर जित्तपोर्णस (िीिीएफ) के संजितरण पर माल एि ं सेिाकर (िीएसर्ी)
स े छूर् प्रिान की ह।ै
2. अजधसूचना संख्या 11/2017-केन्द्द्रीय उत्पाि िल्ु क, दिनांक 30 िून, 2017, 07/2019- केंद्रीय उत्पाि िल्ु क,
दिनांक 22 अगस्ट्त, 2019, 12/2017-केंद्रीय कर (िर), दिनांक 28/06/2017, और 2/18-केंद्रीय कर (िर) दिनांक
25.01.2018 के प्रयोिन हते ु, आरसीएस उडानों द्वारा आरसीएस मागों के प्रारंभ होने की जतजथया ं जनम्नानुसार
अजधसूजचत ह ैं:
6919 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
क्र.स ं आरसीएस हिाईअड्डे का नाम और आरसीएस माग ि आरसीएस उडान के अतं गति
पररचालन आरंभ होन ेकी जतजथ
1. अल्मोडा (उत्तराखडं ) 26-08-2022
पंतनगर (उत्तराखंड) –अल्मोडा (उत्तराखंड) -पंतनगर (उत्तराखंड)
2. जपथौरागढ़ (उत्तराखडं ) 26-08-2022
जपथौरागढ़ (उत्तराखंड)- अल्मोडा (उत्तराखडं ) -जपथौरागढ़ (उत्तराखंड)
3. ियपोर (ओजडिा) 03-08-2022
भुिनेश्वर (ओजडिा) –- ियपोर (ओजडिा) भुिनेश्वर (ओजडिा)
4. ियपोर (ओजडिा) 12-08-2022
जििाखापत्तनम (आंध्र प्रिेि) – ियपोर (ओजडिा)- जििाखापत्तनम
(आंध्र प्रििे )
5. जिमला (जहमाचल प्रिेि) 26-09-2022
दिल्ली - जिमला (जहमाचल प्रििे ) - दिल्ली
6. तेिू (अरुणाचल प्रिेि) 26-09-2022
इंफाल (मजणपुर) - तेिू (अरुणाचल प्रिेि) - इंफाल (मजणपुर)
[फा. सं. एिी-13012/1/2019-डीर्ी अनुभाग-एमओसीए-भाग (1)]
उर्ा पाढी, अपर सजचि
MINISTRY OF CIVIL AVIATION
NOTIFICATION
New Delhi, the 4th October, 2022
G.S.R. 773(E).—553(E). Government of India, Ministry of Finance, vide Notification No. 12/2017
- Central Tax (Rate), dated 30.06.2017, subsequently amended vide Notification No. 7/19- Central Excise,
dated 22 August, 2019 has specified 2% of Excise Duty on the Aviation Turbine Fuel drawn by SAOS or
cargo operators for RCS - UDAN flights from the RCS - UDAN Airports or Heliports or Water aerodromes
for a period of three years from the date of commencement of operations of the RCS Airport/Heliport/
Water Aerodrome as notified by the Ministry of Civil Aviation. Further, Govt. of India, Ministry of
Finance, vide Notification No. 2/18- Central Tax (Rate) dated 25.01.2018 has granted Goods and Service
Tax (GST) exemption on disbursement of Viability Gap Funding (VGF) to SAOs for flights operated under
RCS - UDAN for a period of three years w.e.f. the date of commencement of RCS - UDAN fights, as
notified by the Ministry of Civil Aviation from time to time.
2. The dates of commencement of RCS routes by RCS flights for the purpose of notifications no.
11/2017-Central Excise, dated 30 June, 2017, 07/2019- Central Excise, dated 22nd August, 2019, 12/2017-
Central Tax (Rate), dated 28/06/2017, and 2/18-Central Tax (Rate) dated 25.01.2018 are notified as under:
Sl. No. Name of RCS Airport with RCS route Date of Commencement of
operations under RCS-
UDAN
1. ALMORA (Uttarakhand) 26-08-2022
PANTNAGAR (Uttarakhand) -ALMORA (Uttarakhand) -
PANTNAGAR (Uttarakhand)
2. PITHORAGARH (Uttarakhand) 26-08-2022
PITHORAGARH (Uttarakhand)- ALMORA (Uttarakhand) -
PITHORAGARH (Uttarakhand)[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
3. JEYPORE (Odisha) 03-08-2022
BHUBANESHWAR (Odisha) -JEYPORE (Odisha)-
BHUBANESHWAR (Odisha)
4. JEYPORE (Odisha) 12-08-2022
VISHAKHAPATNAM (Andhra Pradesh) -JEYPORE (Odisha)-
VISHAKHAPATNAM (Andhra Pradesh)
5. SHIMLA (Himachal Pradesh) 26-09-2022
DELHI - SHIMLA (Himachal Pradesh) - DELHI
6. TEZU (Arunachal Pradesh) 26-09-2022
IMPHAL (Manipur) - TEZU (Arunachal Pradesh) - IMPHAL
(Manipur)
[F. No. AV-13012/1/2019-DT Section-MoCA-Part(I)]
USHA PADHEE, Addl. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.