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Key Points

Army Chief General Upendra Dwivedi has praised the government's GST reforms for the defence sector. The GST on several weapons and military equipment has been completely abolished. These changes are expected to significantly boost defence corridors and manufacturing investments. MSMEs and startups will also find it easier to fund research and development for army equipment.

Key Points: Army Chief Upendra Dwivedi Hails GST Reforms for Defence Corridors

  • GST completely abolished on military aircraft and weapons
  • Drone GST slashed from 28% to 5%
  • MSMEs and startups to benefit from easier R&D funding
  • GST removed on missiles, simulators, and ejection seats
2 min read

GST reforms to give our defense corridors a major boost: Gen Upendra Dwivedi

General Upendra Dwivedi says GST abolition on weapons and equipment will boost defence corridors and help MSMEs invest in R&D for Indian Army modernization.

"The biggest benefit is that our defence corridors will get a major boost - General Upendra Dwivedi"

New Delhi, Sep 5

Chief of the Army Staff, General Upendra Dwivedi, on Friday said the GST reforms will give our defence corridors a major boost, as we can now make greater investments and expect better results.

In a major boost to the defence sector, the Goods and Services Tax (GST) on several weapons, military aircraft, and equipment has been completely abolished.

Additionally, the GST on drones has been slashed drastically from 28 per cent to 5 per cent.

Speaking at an event here, Dwivedi thanked the government for GST reforms.

"The biggest benefit is that our defence corridors will get a major boost, as we can now make greater investments there and expect double the results. Similarly, MSMEs and startups, which usually face a shortage of funds, will now find it easier to invest in research, development, manufacturing, and upgradation of equipment for the Indian Army," he said.

Under the GST 2.0 regime, several weapons earlier under the 18 per cent GST slab have now been moved to the nil GST category.

These include military transport aircraft such as the C-130 (procured from the US) and the C-295 medium transport aircraft (jointly manufactured by Airbus and Tata in Vadodara).

Moreover, GST has also been removed on missiles launched from Remote Pilot Aircraft (RPAs) used by the armed forces.

GST has been eliminated on GSAT systems, ship-launched missiles, flight motion simulators, underwater vessels, and fighter jet ejection seats, which allow pilots to exit safely during emergencies.

—IANS

- IANS

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Reader Comments

P
Priya S
Finally some good news for MSMEs in defense sector! The high GST was making it difficult for small manufacturers to compete. This should help create more jobs in defense corridors too.
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Aman W
While this is a positive step, I hope the benefits actually reach the small manufacturers and aren't just absorbed by big corporates. Proper implementation is key.
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Sarah B
Great to see India focusing on self-reliance in defense. The C-295 manufacturing in Vadodara with Tata-Airbus partnership shows we're moving in the right direction. Make in India! ✈️
V
Vikram M
This is what strategic policymaking looks like. Removing GST on critical defense equipment will make our armed forces more capable and reduce dependency on imports. Jai Hind!
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Nisha Z
Hope this leads to more innovation in defense tech from Indian startups. The drone sector especially has huge potential for both military and civilian use.

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