In a significant move to foster the growth of space-tech startups in the country, on 11 July, Finance Minister Nirmala Sitharaman made the announcement to exempt satellite launch services by private organisations, from GST.
Lt Gen A K Bhatt (retd) Director General, Indian Space Association (ISpA), said, “This step will give financial relief to the players and will incentivize the growth of this nascent sector. We believe it will help enable the growth of indigenous launch capabilities and ensure a level playing field for all.”
Commenting on this, Pawan Kumar Chandana, co-founder, and CEO, Skyroot Aerospace, said, “As of now, GST exemption is for government launches through NSIL. This GST exemption extending to private players is a welcome move, which will create a level playing field and also encourage Indian satellite companies to opt for launch services from domestic private companies.”
Taken after a recent meeting with the GST Council, chaired by the finance minister Nirmala Sitharaman, in collaboration with leading experts from the space-tech industry, this new step aims to provide a conducive environment for space-tech startups to thrive and will help them offer competitive rates to put satellites in orbit.
“We welcome the decision of the government. It will help the private players offer competitive rates in a highly competitive sector,” said Manu J Nair, co-founder, EtherealX. Under the newly introduced 0% GST regime, space-tech startups will be exempted from paying any goods and services tax on their products and services. Which comes as a relief by reducing the financial burden on these startups.
Anil Prakash, Director General, SatCom Indian Association, expressed, “We appreciate the government’s recognition of the importance of a level playing field for the private sector and startups in the space industry.”
Further, the startups in the space-tech sector can now also focus on research and development to enhance their studies and work. This decision comes at a crucial time when the space-tech industry is witnessing rapid growth and immense potential.
By eliminating the GST burden, the government is looking to attract more startups to invest in this sector which will result in leading to job creation, technological innovation, and economic growth. Spacetech startups can now go on their journey to explore the sector.
