Space companies seek GST exemption, tax holiday
Indian Space Association (Ispa) has sought GST exemption for satellite companies and providing tax holiday in the Union Budget 2024-25 with a focus on enhancing the financial well-being of the industry.
“Expand GST exemption to satellites, launch vehicles and ground equipment manufacturing. Plus, similar exemption on procurement of key inputs. Provide tax holidays and exemptions for space sector firms. Concession on customs duties for notified imports,” the industry group in a statement said.
The Delhi-based group also said that a clarity on foreign direct investment (FDI) policy for the space sector, introducing production linked incentive (PLI) scheme for space-grade components and adopting space tech solutions across domains like agriculture and disaster management.
It also demanded lowering the tax rate to 5% on external commercial borrowings along with capital subsidy on infrastructure investments.
“To propel this promising industry and drive innovation, it is crucial for the government for the development of a comprehensive regulatory framework and address existing fiscal and taxation challenges,” the Director General of Ispa said.
Bhatt further said the government should consider their recommendations for incentivising the growth of private space enterprises.
“By leveraging the momentum provided by the government and its visionary policy, these enterprises can deliver significant socio-economic benefits to the nation.”
Ispa further said that while IN-SPACe’s 10-year strategy envisions significant growth, the recommendations might result in adopting space tech applications and cost reduction to boost manufacturing in achieving the $44 billion target by 2033.
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