Assam Amends GST Rate for Helicopter Passenger Transport Services

The Government of Assam recently issued Notification No. 07/2024-STATE TAX (RATE) on October 17, 2025, introducing significant amendments to the existing Goods and Services Tax (GST) framework within the state. This notification, issued by the Finance (Taxation) Department, modifies the earlier Notification No. FTX.56/2017/24 dated June 29, 2017 (also known as Notification No. 11), which was originally published in the Assam Gazette, Extraordinary. The executive action was taken by the Governor of Assam, acting on the recommendations of the Council, and was deemed necessary in the public interest. The primary objective of this amendment is to refine the taxation structure for specific air transport services. This notification is deemed to have come into force retrospectively on October 10, 2024.

The core of the amendment lies in the insertion of a new entry into the Table of the principal notification, specifically against serial number 8. This new item, designated as (ivb), addresses the taxation of passenger transportation by air. The legislation provided: “Transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis. 2.5 Provided that credit of input tax charged on goods used in supplying the service has not been taken.” This provision sets a specific tax rate of 2.5% for such services. Furthermore, the amendment stipulates a crucial condition: the service provider cannot avail credit of input tax charged on goods used in supplying this particular service. Input tax credit (ITC) is a mechanism under GST that allows businesses to reduce the tax they pay on their output by the tax they have already paid on inputs. The notification also mandates a consequential insertion in item (vii) of column (3) of the Table, ensuring that the new item (ivb) is appropriately referenced within the existing framework.

The legislative intent behind this notification appears to be a targeted adjustment to the state's GST regime, reflecting a policy rationale to either promote or specifically regulate helicopter passenger services offered on a seat-share basis. By introducing a distinct tax rate with a specific condition regarding input tax credit, the government aims to provide clarity and potentially a concessional tax environment for this niche segment of air travel. This move addresses any potential ambiguities or gaps that might have existed in the previous statutory framework regarding the taxation of such services. The amendment ensures that the Assam Goods and Services Tax Act, 2017, under which the original notification was issued, remains responsive to evolving economic activities and public interest considerations, without introducing new rights or obligations beyond the specified tax treatment.

Keywords: Assam GST, Helicopter transport, State Tax, Notification, Goods and Services Tax, Input Tax Credit, Air travel, Taxation, Finance Department Geo Tags: India, Assam District: Not Applicable