Notification No 05

## Policy Analysis Report: Amendment to Delhi Goods and Services Tax Act, 2017 **1. Executive Summary:** This report analyzes a notification from the Government of the National Capital Territory of Delhi, dated March 24, 2021, which amends the Delhi Goods and Services Tax Act, 2017. The core purpose of this amendment is to introduce an exemption from the state tax for satellite launch services supplied by specific Indian space organizations. The key finding is that this amendment aims to promote the space sector by reducing the tax burden on satellite launch services provided by ISRO, Antrix Corporation Limited, and New Space India Limited. **2. Introduction:** The purpose of this report is to provide a detailed analysis of a notification issued by the Government of the National Capital Territory of Delhi regarding amendments to the Delhi Goods and Services Tax (DGST) Act, 2017, based solely on the information contained within the provided document. **3. Policy Overview:** * **Original Policy:** This notification amends the existing “Notification of the Government of National Capital Territory of Delhi in the Department of Finance RevenueI, No.122017 State Tax Rate, dated the 30th June, 2017, published in the Gazette Delhi, Extraordinary, Part IV, vide No. F.3 15Fin Rev I201718DSVI380, dated the 30th June, 2017”. The original notification pertains to state tax rates under the DGST Act. * **Core Objective(s):** The core objective of *this amendment* is to introduce specific tax exemptions, as inferred from the insertion of a new entry related to satellite launch services. The underlying aim appears to be the promotion of specific sectors by providing tax relief. **4. Background and Rationale:** This amendment likely aims to support the Indian space sector by making satellite launch services more financially viable. The exemption from state tax suggests an effort to reduce the overall cost of these services, potentially attracting more business for Indian space organizations and fostering growth within the industry. **5. Key Provisions / Changes:** This notification *amends* the original policy by inserting the following new entry into the tax rate table: * **What's Being Changed:** The notification amends the table within the original DGST notification relating to applicable tax rates for various services. * **New Rule/Provision:** The amendment introduces a new entry: * **19C** * **9965** * **Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited.** * **Nil** * **Nil** (Indicates a Nil rate) * **Difference/Effect:** This change adds a new service (satellite launch services by ISRO, Antrix, and NSIL) to the existing list and assigns a "Nil" state tax rate to it. This effectively exempts these services from state tax, lowering the cost for customers utilizing these services. **6. Target Audience and Stakeholders:** The primary target audience includes: * **Indian Space Research Organisation (ISRO)** * **Antrix Corporation Limited** * **New Space India Limited** * Customers of these organizations who procure satellite launch services. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Department of Finance, Expenditure IV of the Government of National Capital Territory of Delhi is responsible for issuing and implementing this notification. The Lt. Governor of Delhi approved the notification. * **Timelines:** The notification states that the change comes into effect from the 16th day of October, 2020. This implies that the tax exemption is retroactive to that date. **8. Expected Outcomes / Impact of Changes:** The expected outcomes of this amendment include: * **Reduced costs for satellite launch customers** using ISRO, Antrix, and NSIL. * **Increased competitiveness** of these Indian space organizations in the global market. * **Potential for increased demand** for satellite launch services from these organizations. * **Growth and development** of the Indian space sector. **9. Conclusion:** The amendment to the Delhi Goods and Services Tax Act, 2017, provides a significant incentive for the Indian space sector by exempting satellite launch services provided by ISRO, Antrix Corporation Limited, and New Space India Limited from state tax. This change is likely to stimulate growth, attract more business, and enhance the competitiveness of these organizations within the global space market. The notification demonstrates the government's commitment to supporting and promoting the space industry.

Key Entities Referenced