New

Published on:

April 6, 2026

Swipe Admin

Blog |

Explore GST

GST Rates & HSN Code for Aircraft and Spacecraft

Yes, even Aircraft and Spacecrafts have HSN Codes and get charged with their GST rates. It can be quite jarring a realisation but beyond the fuel and high-tech engineering, there is an even huge web of taxes that keeps the aerospace industry on the go. In India, the aerospace sector is a key part of our “Viksit Bharat” vision of 2026, and the government has designed the tax rules to encourage both travel and space exploration.

Whether you are an airline operator buying a new fleet, a startup building a satellite, or a drone enthusiast, the GST rules in HSN Chapter 88 affect your bottom line. As we navigate through 2026, the tax structure has been reinstated to differ between what is known as essential transport and luxury travel.

This guide explores the GST rates and HSN codes for aircraft and spacecraft, helping you understand the latest 2026 updates, especially the total exemptions for satellite launches.

Spacecrafts and Satellites

HSN Code: 8802 60 00

GST Rats: 0%

This includes Spacecraft that include satellites and suborbital and spacecraft launch vehicles. By keeping GST at zero, the government encourages private startups and international companies to use Indian launch pads like iSRO without an upfront tax burden. This exemption also applies to the satellite launch services themselves, making India one of the most cost-effective places in the world to reach orbit in 2026.

Aircraft and Helicopters under HSN 8802

For many vehicles that stay and work within our atmosphere, the tax depends heavily on why you are using it and what exactly it is for.

‍Commercial Use (HSN 8802): Most aeroplanes and helicopters used for public transport or cargo carry a 5% GST rate. This “merit rate” ensures that air travel remains affordable for the commoners like us.

Personal Use or Luxury: However, after the significant ‘GST 2.0’ reforms undertaken during the latter half of 2025, aircraft, including private jets, fall under the HSN code 8802 and are liable to pay the applicable GST at the rates notified. It is recommended that the latest notification be referred to for the applicable GST rates, which will be applicable at the time of purchase.

Unmanned Aircraft or Drones (HSN 8806): In 2026, unmanned aircraft systems (Drones) fall under HSN 8806 and normally attract a GST rate of 18%. However, some parts or categories may be classified under different HSNs with a concessional rate.

Aircraft Parts under HSN 8807

Maintaining an aircraft is expensive. To help the Maintenance, Repair and Overhaul or MRO industry grow in India, the tax on parts has been simplified.

‍HSN Code: 8807

GST Rate: 5%

This includes propellers, rotors, under-carriages, etc., of aeroplanes or helicopters, and other parts specifically classified under 8807. By retaining the tax rate at 5%, India has become a hub for aircraft maintenance in South Asia, where international airlines bring their planes for maintenance.

Comparison between the Aerospace GST Rates

Below is a table comparing different Aerospace crafts and their HSN Codes and their Latest GST Rates. This becomes increasingly clear which category has the highest GST Rate and why is that the case:

Category	HSN Code	Latest GST Rate	Notes
Satellites	8802 60 00	0%	Encourage domestic launches
Commercial Aircraft	8802	5%	For passenger and cargo
AIrcraft for Personal Use	8802	40%	Luxury rate
Aircraft Space Parts	8807	5%	Supports the MRO industry
Drones for Agriculture Use	8806	5%	Boosts farming efficiency (depends on use)

Read about: Namo Drone Didi as the top women welfare schemes of women in agricultural sectors.

Tips for Businesses

If you are a supplier of aircraft parts or a drone service provider, even a small error in your tax calculator can lead to huge and massive penalties. Hence, managing a business in the aerospace or logistics sector involves tracking incredibly high-value invoices and complex HSN codes. This is where smart fintech apps help you with your billing system.

By using an app like Swipe, you do not have to worry about memorising the latest GST on aircraft and spacecraft. The app automatically updates according to the latest 2026 reforms. When you select a part under HSN 8807 or a service. Swipe applied correctly where the rate requires it to apply 5% or 18% rate. The process is instant. The moment a high value payment lands, your digital ledger is updated, and your tax reports are ready for the year end audits.

Conclusion

The tax rate imposed on aircraft and spacecraft in 2026 is a reflection of India's twin objectives: making life simpler for the common man and becoming a leader in space. Satellites, falling under HSN 8802 60 00, enjoy a 0% tax, thereby promoting innovation in space exploration and private travel. Commercial aircraft and parts of aircraft falling under HSN 8802 and 8807, enjoy a 5% tax, promoting affordable aviation and MRO activities in India. Private jets, on the other hand, fall under the 40% luxury tax bracket, while drones falling under HSN 8806 enjoy a tax depending on their usage.

Whether you are buying a drone for your farm or managing a fleet of helicopters, staying compliant is easier when you understand these HSN codes. This is where using services like Swipe, helps you maximise your efforts and keep you at ease with taxation and updated with the latest GST upgrades.

FAQs

Is there GST on International flight tickets?

GST is applicable on the service of air transport. For Economy Class, it is 5%, and for Premium/Business Class, it has been rationalised to 18% now in the latest update.

Can I claim Input Tax Credit (ITC) on aircraft parts?

Yes. If you are a registered MRO provider or an airline, you can claim the 5% GST paid on parts as ITC, provided they are used for your business of providing taxable transport or repair services.

What is “Unladen Weight” in Aircraft GST?

It refers to the weight of the aircraft in normal flying order but without the crew, fuel, or removal equipment. This weight determines the specific sub-heading for your aircraft in the HSN table.

Are satellite launch services by private companies also exempt?

Yes. Following the 50th and 56th GST Council meetings, the exemption for satellite launch services has been extended to include private sector players alongside ISRO to ensure a level playing field.

Are special licences required to import aircraft parts? Do I need them?

Yes. While the GST is 5%, importing aircraft parts in Chapter 88 often requires specific clearance from the Directorate General of Civil Aviation and an import Export Code (IEC).

Curious? Try Swipe for FREE today!

Featured Posts

Difference Between Stock And Inventory In Accounting

Applicability of GST on Cold Storage: Key Considerations

Deductions Explained: Sections 24(b), 80EE, and 80EEA

Impact of GST on the Agricultural Sector: Key Insights

House Rent Allowance: Tax Rules and Benefits

GSTR-3B Filing: Eligibility Criteria and Important Due Dates

Goods and Services Tax Network (GSTN): Key Insights and Functions

Standard Unit Quantity Codes (UQCs) for Import and Export Authorisation

Featured Posts

Looking for a billing software?

Quick Links

Learn More

Testimonials