{"id":21415,"date":"2020-12-09T14:28:38","date_gmt":"2020-12-09T08:58:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21415"},"modified":"2020-12-09T14:28:39","modified_gmt":"2020-12-09T08:58:39","slug":"gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/","title":{"rendered":"GST Exemption on Satellite launches for Encouraging the Domestic Launch"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The GST exemption on satellite will facilitate to protect the local satellite industry and further develop home-made launch capabilities without the upfront GST burden and give it a level playing field. The Central Government with a motive to encourage domestic launching of the Satellites by <strong>(ISRO) Indian Space Research Organization<\/strong><sup><a href=\"https:\/\/www.isro.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> and Antrix Corporation (the commercial arm of ISRO), the GST Council has determined that the 18% of GST will entirely be scrapped. The startups which are developing satellites will not be liable to pay GST now when they choose the Indian launch vehicle. <\/p>\n\n\n\n<p>However, it was not made clear whether the relief shall be extended to private launch companies. All private firms in this sector have said that there will not be the level playing field if such a thing does not happen.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/#Key_Highlights_of_Notification\" >Key Highlights of Notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/#Benefits_of_this_GST_exemption\" >Benefits of this GST exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/#Future_of_Satellite_Launches_Services_after_the_GST_Exemption\" >Future of Satellite Launches Services after the GST Exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_of_Notification\"><\/span>Key Highlights of Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1000\" height=\"300\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Key-Highlights-of-Notification.png\" alt=\"Key Highlights of Notification\" class=\"wp-image-21416\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Key-Highlights-of-Notification.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Key-Highlights-of-Notification-300x90.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Key-Highlights-of-Notification-768x230.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Notification of GST exemption on Satellite by GST Council<\/h3>\n\n\n\n<p>A notification by the GST Council dated 16th October 2020 aims to amend Notification No. 12\/2017 Central Tax (Rate) 28th June 2017 providing exemptions on supply of services under the GST Act. The Serial number 19C is added in order to excuse the Satellite launch services offered by Indian Space Research Organization, Antrix Corporation Limited, or New Space India Limited. The startups that are manufacturing satellites to launch will be exempted from the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST<\/strong><\/a> now when they choose for an Indian launch vehicle.<\/p>\n\n\n\n<p>The declaration demonstrated to be an\nencouragement to those Satellite making startups that were earlier obligatory\nto opt for foreign rockets for the preliminary satellite launch. Remarkably,\nearlier a launch services offered to foreign companies were paradoxically\nqualified as &#8220;export of service&#8221; that is exempted from the levy of\nGST rates. So it is now cheaper for the Indian-origin or Start-up ventures to\nrecord the business in the foreign country and launch it using the ISRO rockets\nas a foreign customer.<\/p>\n\n\n\n<p>In year 2018, the Falcon 9 rocket of\ncompany Space X, owned by Elon Musk took off its 1st space flight, which\ncarried 70 satellites from a total of 16 countries including one from India\ncalled Exceed SAT 1, that turn out to be a first ever private satellite from\nIndia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_this_GST_exemption\"><\/span>Benefits of this GST exemption<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST exemption on satellite will further\nprotect domestic satellite industry utilize capabilities of home-grown launch\nwithout an upfront GST burden &amp; give it a level playing field. However,\nthey have not mentioned anything about the private launch companies such as Sky\nroot. If that is the situation (meaning if a specific relief is not extended to\nprivate launch companies), then it is against an equal opportunities.<\/p>\n\n\n\n<p>It will directly facilitate the creation of\nthe whole new system of satellite players in the Republic of India. Now, the\nbase is at the equal level and the domestic satellite business will be encouraging\nthe entire space of ecosystem said one of the founders of Agnikul Cosmos. The\nsmall rocket maker is organised together for launching of satellites from that\nsmall vehicle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_of_Satellite_Launches_Services_after_the_GST_Exemption\"><\/span>Future of Satellite Launches Services after the GST Exemption\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This latest declaration will form a way for\nthe future launches by the domestic launch pad and offer companies to play in\nfield at an equal level. Nevertheless, India requires a government merit for\ngrants and funds, as same as is the case in Finland and Japan.<\/p>\n\n\n\n<p>Presently one Indian private company \u2013\nSatellize, has the satellites initiated into orbit. While the primary launch\nwas on board of the SpaceX rocket, the second was by the ISRO as they also have\ntwo launches in this year. The global launch costs for per Kg of payload which\nis low as compared to ISRO which has high in cost but now a because of the GST\nexemption on satellite it will help to gain global position for ISRO.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is made clear that an <a href=\"https:\/\/corpbiz.io\/learning\/exemptions-under-gst\/\"><strong>GST exemption<\/strong><\/a> on satellite launch will facilitate to protect a local satellite industry develop home-made launch capabilities without an upfront GST burden and give it a level playing field. This move will encourage domestic launching of Satellites by the Indian Space Research Organization (ISRO) and the Antrix Corporation (a commercial arm of the ISRO). <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/list-of-goods-and-services-where-gst-is-applicable-latest-rates\/\">\nList of Goods and Services where GST is Applicable: Latest Rates\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The GST exemption on satellite will facilitate to protect the local satellite industry and further develop home-made launch capabilities without the upfront GST burden and give it a level playing field. The Central Government with a motive to encourage domestic launching of the Satellites by (ISRO) Indian Space Research Organization[1] and Antrix Corporation (the commercial [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21418,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1298],"acf":{"service_id":"68"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":5799,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21415"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21415"}],"version-history":[{"count":25,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21415\/revisions"}],"predecessor-version":[{"id":21449,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21415\/revisions\/21449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21418"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}