High GST rate on aircraft engine components forcing P&W to go abroad for engine maintenance

By ET News

High GST rate on aircraft engine components has been forcing Pratt & Whitney to go abroad for engine maintenance despite having a collaboration with Air India’s engineering subsidiary AIESL for the servicing, according to an industry source.

Engine components attract as higher as 18 per cent goods and service tax (GST), which makes the business unviable in India, and the engine maker wants the government to bring it in parity with 5 per cent GST as in the case of aircraft components, the source said.

In February, Pratt & Whitney (P&W), which has supplied its Geared Turbo Fan (GTF) engines in large numbers to IndiGo and GoAir for their Airbus A320neo family planes, inked a pact with Air India Engineering Services Ltd (AIESL) to service these engines at the latter’s MRO facility in Mumbai.

A P&W spokesperson in a statement to , however, said that collaboration with AIESL remains strong, despite the challenges faced by the industry due to the coronavirus pandemic.

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