E-Paper
GST on drones slashed to 5% from 12/18% earlier as part of rationalisation move
Earlier, the GST rate on drones was 18% for commercial use and 28% on drones classified for personal use. Now, it’s a uniform 5%.
The government has cut the GST on drones—for personal use or otherwise—to a uniform 5%, as part of rationalisation of the indirect tax regime.
“[GST rationalisation] will enable India to emerge as a leader in transformative technologies like drones,” Union Minister for Civil Aviation Ram Mohan Naidu said in a statement on Tuesday. “A uniform 5% will now apply on all drones, providing significant policy certainty and eliminating classification disputes.”
Previously, the GST rate was 18% on drones for commercial use and 28% for personal use. Now, that stands at a uniform 5%, irrespective of whether the equipment has integrated cameras or not. The revision will officially come into effect on 22 September 2025.
On 4 September, the government reduced GST on hundreds of items—from soaps to small cars—in India’s biggest indirect tax reforms since 1 July 2017 when Goods and Services Tax first came into effect. That was prompted by a move to rationalise the four-slab GST structure (5%, 12%, 18% and 28%) to a two-tier one—5% for essential items and 18% for discretionary.
According to Naidu, a 5% GST on drones will boost their adoption in sectors like agriculture, petroleum, mining, infrastructure, logistics and defence/security. An increased demand would create more jobs in manufacturing and assembling of drones, as well as software development, data analytics and field operations.
Additionally, the GST Council has exempt flight simulators and motion simulators—critical for pilot training—from any indirect taxation.
