## Report on Notification Regarding RCS-UDAN Scheme (August 11, 2021)
**1. Executive Summary:**
This report analyzes a notification published by the Ministry of Civil Aviation on August 11, 2021, concerning the Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik). This notification addresses Goods and Service Tax (GST) and Excise Duty exemptions related to the RCS-UDAN scheme and most importantly, it specifies the dates of commencement of operations for various RCS routes. The core purpose is to facilitate and promote regional air connectivity by reducing financial burdens on Selected Airline Operators (SAOs). The key finding is the detailed listing of RCS airport routes and their respective commencement dates, which are critical for determining the eligibility of SAOs for GST and excise duty exemptions.
**2. Introduction:**
This report provides an overview and analysis of a notification issued by the Ministry of Civil Aviation, Government of India, dated August 11, 2021. The purpose of this report is to inform stakeholders, particularly SAOs operating under the RCS-UDAN scheme, about the specifics of this notification based solely on the information contained within the provided text.
**3. Policy Overview:**
This is not a new policy but rather a notification in continuation of existing policies related to the RCS-UDAN scheme. The core objectives, as inferred from the text, are:
* To grant Goods and Service Tax (GST) exemption on disbursement of Viability Gap Funding (VGF) to Selected Airline Operators (SAOs) for flights operated under the Regional Connectivity Scheme RCS UDAN.
* To specify a 2% 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 Wateraerodromes.
* To notify the dates of commencement of RCS routes, which determine the eligibility period for these tax benefits.
**4. Background and Rationale:**
This notification serves as an update to previous notifications concerning GST and excise duty exemptions for RCS-UDAN flights. The rationale for this specific notification is to provide clarity and certainty to SAOs regarding the commencement dates of RCS routes. This clarity is essential for determining the period during which they are eligible for GST exemption on VGF disbursement and reduced excise duty on Aviation Turbine Fuel. Without these dates, operators would be unable to accurately calculate and claim these benefits.
**5. Key Provisions / Changes:**
This notification primarily functions as an update to the operational start dates for RCS routes, influencing the applicability of previously granted exemptions. Therefore, this section will focus on the change.
* **What specific part of the original policy is being changed:** The notification updates the dates of commencement of RCS routes for the purpose of previously issued notifications regarding GST and Excise Duty exemptions to SAOs operating under RCS-UDAN.
* **What the *new* rule/provision *is*, based *only* on the amendment text:** The primary new provision is the detailed list of RCS airport routes and their corresponding dates of commencement of operations under RCS-UDAN. This list provides specific dates for each route, allowing for precise calculation of eligibility for benefits. Some examples of the routes and start dates include:
* AGRA (Uttar Pradesh) to JAISALMER (Rajasthan) commenced on 05112019
* KANDLA (Gujarat) to AHMEDABAD (Gujarat) commenced on 18112019
* DARBHANGA(Bihar) to DELHI commenced on 08112020
* **Explain the *difference* or the *effect* of this specific change:** The effect of this change is to provide SAOs with clear, officially recognized dates for the commencement of operations on specific RCS routes. This allows them to definitively determine the start date for the three-year period during which they are eligible for GST exemption on VGF and reduced excise duty on ATF. Without this list, the eligibility period would be ambiguous and subject to interpretation, potentially leading to disputes or disallowed claims.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Selected Airline Operators (SAOs) operating flights under the RCS-UDAN scheme.
* The Ministry of Civil Aviation, responsible for administering the RCS-UDAN scheme and issuing these notifications.
* The Ministry of Finance, specifically regarding the implementation of GST and excise duty policies.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies mentioned:** The Ministry of Civil Aviation is responsible for notifying the dates of commencement of RCS routes. The Ministry of Finance is responsible for implementing the GST and excise duty exemptions.
* **Any timelines or procedures specified *in the text*?:** The text specifies that the GST and excise duty benefits are applicable for a period of three years from the date of commencement of RCS UDAN flights, as notified by the Ministry of Civil Aviation. The notification itself provides the specific dates of commencement for a large number of routes.
* The implementation of the dates is expected to be by Government of India Press, Ring Road, Mayapuri, New Delhi
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of these specific changes (the notification of commencement dates) is to:
* Provide clarity and certainty to SAOs regarding their eligibility for GST and excise duty benefits.
* Facilitate the smooth implementation of the RCS-UDAN scheme by reducing ambiguity regarding the applicable dates for tax benefits.
* Encourage greater participation by SAOs in the RCS-UDAN scheme by reducing their operational costs through tax exemptions.
**9. Conclusion:**
The notification issued by the Ministry of Civil Aviation on August 11, 2021, is a crucial component of the RCS-UDAN scheme. By providing specific commencement dates for RCS routes, the notification clarifies eligibility criteria for GST and excise duty exemptions, ultimately contributing to the scheme's objective of enhancing regional air connectivity and affordability. This notification is of significant importance to SAOs operating under RCS-UDAN, as it directly impacts their financial viability and operational planning.
Key Entities Referenced
Ministry of Civil Aviation: Government ministry responsible for civil aviation.
New Delhi: Capital of India, where the notification was issued.
Government of India, Ministry of Finance: The ministry of finance of the Government of India.
Notification No. 122017 Central Tax Rate: A tax rate notification issued by the Ministry of Finance.
Notification No. 218Central Tax Rate: A tax rate notification issued by the Ministry of Finance.
Goods and Service Tax: A tax on goods and services in India.
GST: Abbreviation of Goods and Service Tax.
Viability Gap Funding: Financial support to infrastructure projects that are economically justified but fall short of financial viability.
VGF: Abbreviation of Viability Gap Funding.
Selected Airline Operators: Airlines selected for the Regional Connectivity Scheme.
SAOs: Abbreviation of Selected Airline Operators.
Regional Connectivity Scheme: A scheme to enhance air connectivity to remote areas in India.
RCS: Abbreviation of Regional Connectivity Scheme.
UDAN Ude Desh ka Aam Nagrik: A regional airport development and Regional Connectivity Scheme (RCS) of the Government of India
Notification no. 112017Central Excise: Central Excise notification issued by the Ministry of Finance
notification no. 072019Central Excise: Central Excise notification issued by the Ministry of Finance
Aviation Turbine Fuel: Type of jet fuel used in aircrafts.
RCS UDAN Airports: Airports included in the RCS UDAN scheme.
RCS UDAN Airports or Heliports or Wateraerodromes: Airports, heliports or wateraerodromes included in the RCS UDAN scheme.
Agra, Uttar Pradesh: City in Uttar Pradesh, India, included in RCS UDAN route.
Jaisalmer, Rajasthan: City in Rajasthan, India, included in RCS UDAN route.
Kandla, Gujarat: City in Gujarat, India, included in RCS UDAN route.
Ahmedabad, Gujarat: City in Gujarat, India, included in RCS UDAN route.
Kalaburgi, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Bengaluru, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Hubballi, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Hyderabad, Telangana: City in Telangana, India, included in RCS UDAN route.
Amritsar, Punjab: City in Punjab, India, included in RCS UDAN route.
Kolkata, West Bengal: City in West Bengal, India, included in RCS UDAN route.
Dimapur, Nagaland: City in Nagaland, India, included in RCS UDAN route.
Guwahati, Assam: City in Assam, India, included in RCS UDAN route.
Imphal, Manipur: City in Manipur, India, included in RCS UDAN route.
Prayagraj, Uttar Pradesh: City in Uttar Pradesh, India, included in RCS UDAN route.
Gorakhpur, Uttar Pradesh: City in Uttar Pradesh, India, included in RCS UDAN route.
Belagavi, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Tirupati, Andhra Pradesh: City in Andhra Pradesh, India, included in RCS UDAN route.
Mysuru, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Indore, Madhya Pradesh: City in Madhya Pradesh, India, included in RCS UDAN route.
Jharsuguda, Odisha: City in Odisha, India, included in RCS UDAN route.
Bhubaneshwar, Odisha: City in Odisha, India, included in RCS UDAN route.
Varanasi, Uttar Pradesh: City in Uttar Pradesh, India, included in RCS UDAN route.
Bidar, Karnataka: City in Karnataka, India, included in RCS UDAN route.
Chinyalisaur, Uttarakhand: Town in Uttarakhand, India, included in RCS UDAN route.
Sahastradhara, Uttarakhand: Location in Uttarakhand, India, included in RCS UDAN route.
Gaucher, Uttarakhand: Town in Uttarakhand, India, included in RCS UDAN route.
Agartala, Tripura: City in Tripura, India, included in RCS UDAN route.
Aizawl, Mizoram: City in Mizoram, India, included in RCS UDAN route.
Kadapa, Andhra Pradesh: City in Andhra Pradesh, India, included in RCS UDAN route.
Pune, Maharashtra: City in Maharashtra, India, included in RCS UDAN route.
Kishangarh, Rajasthan: City in Rajasthan, India, included in RCS UDAN route.
New Tehri, Uttarakhand: City in Uttarakhand, India, included in RCS UDAN route.
Dehradun, Uttarakhand: City in Uttarakhand, India, included in RCS UDAN route.
Srinagar, Uttarakhand: City in Uttarakhand, India, included in RCS UDAN route.
Patna, Bihar: City in Bihar, India, included in RCS UDAN route.
Jagdalpur, Chhattisgarh: City in Chhattisgarh, India, included in RCS UDAN route.
Raipur, Chhattisgarh: City in Chhattisgarh, India, included in RCS UDAN route.
Sabarmathi River Front, Gujarat: River front in Gujarat, India, included in RCS UDAN route.
Statue of Unity, Gujarat: Statue in Gujarat, India, included in RCS UDAN route.
Darbhanga, Bihar: City in Bihar, India, included in RCS UDAN route.
Mumbai, Maharashtra: City in Maharashtra, India, included in RCS UDAN route.
Delhi: National capital territory in India, included in RCS UDAN route.
Hindan, Uttar Pradesh: Area in Uttar Pradesh, India, included in RCS UDAN route.
Nashik, Maharashtra: City in Maharashtra, India, included in RCS UDAN route.
Adampur, Punjab: Area in Punjab, India, included in RCS UDAN route.
Surat, Gujarat: City in Gujarat, India, included in RCS UDAN route.
Hissar, Haryana: City in Haryana, India, included in RCS UDAN route.
Chandigarh, UT: Union Territory in India, included in RCS UDAN route.
Pakyong, Sikkim: City in Sikkim, India, included in RCS UDAN route.
Calicut, Kerala: City in Kerala, India, included in RCS UDAN route.
Dharamshala, Himachal Pradesh: City in Himachal Pradesh, India, included in RCS UDAN route.
Jodhpur, Rajasthan: City in Rajasthan, India, included in RCS UDAN route.
Bilaspur, Chhattisgarh: City in Chhattisgarh, India, included in RCS UDAN route.
Jabalpur, Madhya Pradesh: City in Madhya Pradesh, India, included in RCS UDAN route.
Bareilly, Uttar Pradesh: City in Uttar Pradesh, India, included in RCS UDAN route.
Bhopal, Madhya Pradesh: City in Madhya Pradesh, India, included in RCS UDAN route.
Dibrugarh, Assam: City in Assam, India, included in RCS UDAN route.
Jaipur, Rajasthan: City in Rajasthan, India, included in RCS UDAN route.
Kurnool, Andhra Pradesh: City in Andhra Pradesh, India, included in RCS UDAN route.
Vishakhapatnam, Andhra Pradesh: City in Andhra Pradesh, India, included in RCS UDAN route.
Chennai, Tamil Nadu: City in Tamil Nadu, India, included in RCS UDAN route.
Shillong, Meghalaya: City in Meghalaya, India, included in RCS UDAN route.
Silchar, Assam: City in Assam, India, included in RCS UDAN route.
Rupsi, Assam: City in Assam, India, included in RCS UDAN route.
Pasighat, Arunachal Pradesh: City in Arunachal Pradesh, India, included in RCS UDAN route.
USHA PADHEE: Jt. Secy.