While the government had reduced GST on imports by the MRO industry to 5% from 18% in 2020 as a measure to help the industry during Covid, there was confusion by the customs department with regards to multiple raw materials as they had a common HSN code with other materials. Raw materials like aircraft paints, speciality steel, nickel-based alloys, and aerospace grade aluminium are being taxed as non-aircraft parts, often leading to increased duty and tax.
