**Executive Summary**
This document is the answer provided by the Minister of State in the Ministry of Civil Aviation to Unstarred Question No. 708 in Lok Sabha, to be answered on December 4th, 2025. The question concerns the rationalization of the GST rate for drones and flight/motion simulators. The key change is a uniform 5% GST on drones and BCD/IGST exemption for imported Flight Motion Simulators used by Defence.
**Key Points / Main Content**
* **GST Rate Rationalization for Drones:**
* Effective 03.09.2025, unmanned aircraft (drones) under CTH 8806 attract a uniform GST rate of 5%.
* This replaces multiple GST rates of 5%/18%/28% previously imposed on drones.
* **Customs Duty Exemption for Flight Motion Simulators:**
* Exemption from Basic Customs Duty (BCD) and IGST is effective 17.09.2025.
* The exemption applies to Flight Motion Simulators and their parts imported by the Ministry of Defence, the defence forces, defence public sector units, other public sector units, or any other entity for the Defence Forces.
* **Impact and Monitoring:**
* Measures aim to promote ease of doing business by simplifying compliance and reducing drone costs.
* These reforms are expected to boost manufacturing, employment, and training in the drone ecosystem.
* The GST rate change applies uniformly across the country to all sectors using drones.
* **Pilot Training Organisation (PTO) and Drone Training Center Proposals:**
* No proposal is currently under consideration to set up a PTO in Sirohi (Rajasthan) or a Drone Training Center in Dahod and Jamshedpur.
* Interested applicants may apply to Directorate General of Civil Aviation (DGCA) for authorization under Drone Rules, 2021 and Drone Training Circular 01 OF 2022 dated 15.02.2022.
**Impact Analysis**
**Stakeholder: Drone Manufacturers and Users**
* **Impact:** Reduced GST rate simplifies compliance, lowers the final cost of drones, and potentially boosts affordability and adoption.
* **Action Required:** Implement the new 5% GST rate and adjust pricing strategies accordingly.
**Stakeholder: Ministry of Defence and Defence Forces**
* **Impact:** Exemption from BCD and IGST on Flight Motion Simulators imports will reduce costs for training and development.
* **Action Required:** Utilize the exemption when importing Flight Motion Simulators and their parts, adhering to the notification requirements.
**Stakeholder: Pilot Training Organisations (PTOs) and Aviation-Skilling Centers**
* **Impact:** Potential for increased demand for drone training due to increased drone adoption. However, no government support for new PTOs in specified areas.
* **Action Required:** Review authorization criteria for establishing PTOs and if interested, apply to DGCA in line with existing drone rules.
Key Entities Referenced
GST Rate: Refers to the Goods and Services Tax rate, specifically the rationalization and impact of reduced rates on drones and flight simulators.
Ministry of Civil Aviation: The primary government body responsible for policies related to the aviation sector.
GST Council: The governing body that makes recommendations concerning Goods and Services Tax in India.
Drone Rules, 2021: The regulatory framework governing the operation and authorization of drones in India.
Pilot Training Organisations (PTOs): Entities providing pilot training, impacted by GST and other policy measures.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 708
th
(To be answered on the 4 December 2025)
RATIONALISATION OF GST RATE
708. SHRI ANIL FIROJIYA
SMT MAHIMA KUMARI MEWAR
SHRI CHANDAN CHAUHAN
SHRI JASWANTSINH SUMANBHAI BHABHOR
SHRI DILESHWAR KAMAIT
SHRI RAJESH NARANBHAI CHUDASAMA
SHRI MANOJ TIWARI
SHRI PARBHUBHAI NAGARBHAI VASAVA
SHRI VISHWESHWAR HEGDE KAGERI
SHRI PRADEEP KUMAR SINGH
SHRI HASMUKHBHAI SOMABHAI PATEL
SHRI AMAR SHARADRAO KALE
SHRI YOGENDER CHANDOLIA
SHRI MITESH PATEL BAKABHAI
SMT D K ARUNA
SHRI LUMBARAM CHOUDHARY
SHRI BIDYUT BARAN MAHATO
SHRI GANESH SINGH
SHRI SURESH KUMAR KASHYAP
DR. SANJAY JAISWAL
SHRI SHANKAR LALWANI
SHRI KHAGEN MURMU
SHRI JANARDAN MISHRA
SHRI MUKESHKUMAR CHANDRAKAANT DALAL
Will the Minister of CIVIL AVIATION be pleased to state:-(a) the details of GST rate rationalisation announced for drones and flight/motion
simulators along with the manner in which these changes promote ease of doing
business in the aviation and emerging technologies sector across the country, State-
wise;
(b) the number of Pilot Training Organisations (PTOs) and aviation-skilling
centres benefited from the said measures since the announcement along with the
manner in which the said measures have benefited them;
(c) the assessment of the Government regarding the impact of lower GST rates and
exemptions on employment generation, manufacturing and promotion of regional
aviation training hubs across the country, State-wise; (d) the steps being taken by the
Government to monitor the effectiveness of these reforms for expansion of the
national drone ecosystem and training infrastructure; and
(e) whether the Government proposes to set up a PTO in Sirohi district of Rajasthan
and a Drone Training Centre in Dahod Lok Sabha Constituency and Jamshedpur
district of Jharkhand and if so, the details thereof?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION
(Shri Murlidhar Mohol)
(a) to (d) Based on the recommendations of the GST Council in its 56th meeting held
on 03.09.2025 , unmanned aircrafts under CTH 8806 (drones) now attract a uniform
5% GST. Further, exemption from payment of Basic Customs Duty (BCD) and
IGST has been notified vide notification No. 37/2025-Cus., dated 17.09.2025 for
Flight Motion Simulators and its parts when imported by the Ministry of Defence or
the defence forces or the defence public sector units or other public sector units or
any other entity for the Defence Forces.
These measures promote ease of doing business by simplifying compliance through
the removal of classification disputes (5% uniform rate for drones instead of multiple
GST rates 5%/18%/28% which were imposed earlier on drones), and lowering the
final cost of drones to boost affordability and adoption.
The impact assessment of such reforms may not be measurable in immediate run.
However in longer run, these reforms are expected to provide an overall boost tothe manufacturing, employment and training in the drone ecosystem. The GST rate
change would apply uniformly across the country to all sectors using drones.
(e) No such proposal is currently under consideration. However, interested
applicants may apply to Directorate General of Civil Aviation (DGCA) for
authorisation under Rule 34 of Drone Rules, 2021 and Drone Training Circular 01
OF 2022 dated 15.02.2022.
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