New Delhi, Jul 9 (PTI) The government has exempted the import of aircraft, aircraft engines and its parts procured on lease from the purview of the Goods and Services Tax (GST).

The aviation industry had been asking for relief as it was facing a dual levy of 5 per cent at the time of import and another 5 per cent at the time of payment of lease rent.

Its concerns were raised by the civil aviation ministry before the revenue department on several occasions.

The finance ministry in a notification yesterday said that airlines would not have to pay GST on import of aircraft and its parts if GST was paid on their lease.

Airlines are awaiting a formal clarification on several other areas of concerns such as input tax credit not being available for economy class tickets and the movement of spares from one part of the country to another.

GST exemption on leased aircraft imports prevents double taxation by treating lease GST as covering import levy. Import of aircraft, aircraft engines and parts procured on lease is not subject to a separate GST where GST has been paid on the lease, preventing a double levy; remaining issues include availability of input tax credit for certain tickets and tax treatment of movement of spares.