Finance Ministry reveals tax concessions for space industry | Science News #IndustryFinance

The budget allocation to the Department of Space over the past five years has also been revealed.

The Government of India has taken measures to boost the private space industry in India. (Image Credit: Yuichiro Chino/Moment/Getty Images).

New Delhi: In a response to a questions posed in the Lok Sabha, Minister of State in the Ministry of Finance, Pankaj Chaudhary has revealed the concessions for the space industry in India, as well as the budget allocation to the department of space over the past five years. The industry had called for GST exemption for those providing launch services for private satellites, as well as production linked incentive schemes such as the one introduced for manufacturing drones and drone components, as well as allocation of additional funds for the space sector.

Pankaj Chaudhary has revealed that, “With regard to GST, it is to state that the GST rates and exemptions are based on the recommendation of the GST Council which is a constitutional body comprising of representatives of the Union and State/UT governments. Based on the recommendation of the GST Council in its 50th meeting, with effect from 27.07.2023, all satellite launch services including private satellite launch services have already been fully exempted from GST Notification No. 07/2023 Integrated Tax (Rate) dated 26th July, 2023.”

The government is considering a PLI for the space industry, as well as an Investment Investment Scheme to encourage domestic space startups. There is in principle an approval for an outlay of Rs 600 crore for the Investment Incentive Scheme towards setting up greenfield manufacturing facilities, or the manufacturing of components and systems. The Space Industry is a capital intensive sector.

To encourage the domestic space sector, there is full exemption from basic customs duty, with integrated GST for satellites, payloads, ground equipment, as well as the testing of the satellites and payloads. The basic customs duty has a rate of five per cent, while the GST rate of 5 per cent is also concessional.

The budget allocation for the Department of Space

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