SECTION 11 OF THE CENTRAL GST ACT, 2017 – POWER TO GRANT EXEMPTION FROM TAX – EXEMPTION TO GST ON DISBURSEMENT OF VIABILITY GAP FUNDING (VGF) TO SELECTED AIRLINE OPERATORS (SAOs) FOR A PERIOD OF ONE YEAR FROM DATE OF COMMENCEMENT OF OPERATIONS OF REGIONAL CONNECTIVITY SCHEME (RCS) AIRPORT AS NOTIFIED BY MINISTRY OF CIVIL AVIATION
NOTIFICATION NO.GSR 751(E) [F.NO.AV-13011/9/2017-DT], DATED 7-8-2018
Government of India, Ministry of Finance vide Notification No. 7/2017-Service Tax dated 2-2-2017 and Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017 has granted exemption from levy of Service Tax/GST on disbursement of Viability Gap Funding (VGF) to Selected Airline Operators (SAOs) for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) Airport as notified by Ministry of Civil Aviation.
For the purpose of the referred Notification for grant of exemption of levy of Service Tax/GST, the date of commencement of operations at various RCS Airports from 1-11-2017 to 24-7-2018 is notified as under:
| S. No. | Name of RCS Airport | Date of Commencement of Operation under RCS-UDAN |
| 1. | Nanded | |
| CSIA Mumbai-Nanded-CSIA Mumbai | 10th November, 2017 | |
| 2. | Kadapa | |
| (i) Chennai-Kadapa-Chennai | 16th November, 2017 | |
| (ii) Vijayawada-Kadapa-Vijayawada | 1st March, 2018 | |
| 3. | Agra | |
| Jaipur- Agra- Jaipur | 8th December, 2017 | |
| 4. | Jalgaon | |
| CSIA Mumbai – Jalgoan – CSIA Mumbai | 23rd December, 2017 | |
| 5. | Ozar (Nasik) | |
| (i) Ozar (Nasik)-Pune – Ozar Nasik (Air Deccan) | 23rd December, 2017 | |
| (ii) IGIA Delhi-Ozar (Nasik)-IGIA Delhi (M/s Jet Airways) | 15th June, 2018 | |
| 6. | Mundra Ahmedabad-Mundra-Ahmedabad | 19th February, 2018 |
| 7. | Jamnagar Ahmedabad-Jamnagar-Ahmedabad | 19th February, 2018 |
| 8. | Diu Ahmedabad-Diu-Ahmedabad | 24th February, 2018 |
| 9. | Bhatinda | |
| Jammu- Bhatinda-Jammu | 27th February, 2018 | |
| 10. | Vijayanagar (Vidyanagar) | |
| Bangalore – Vijayanagar (Vidyanagar) – Bangalore | 1st March, 2018 | |
| 11. | Salem | |
| Chennai- Salem-Chennai | 25th March, 2018 | |
| 12. | Bikaner | |
| Jaipur – Bikaner -Jaipur | 27th March, 2018 | |
| 13. | Pathankot | |
| IGIA Delhi-Pathankot-IGIA Delhi | 5th April, 2018 | |
| 14. | Kolhapur | |
| CSIA Mumbai – Kolhapur – CSIA Mumbai | 8th April, 2018 | |
| 15. | Bhavnagar | |
| Ahmedabad-Bhavnagar Ahmedabad | 26th April, 2018 | |
| 16. | Tezpur | |
| NSCBIA Kolkata-Tezpur-NSCBIA Kolkata | 26th April, 2018 | |
| 17. | Adampur | |
| IGIA Delhi-Adampur-IGIA Delhi | 1st May, 2018 | |
| 18. | Shillong | |
| (i) Shillong-Agartala-Shillong | 1st May, 2018 | |
| (ii) Shillong-Dimapur-Shillong | 1st May, 2018 | |
| 19. | Hubli | |
| (i) Chennai-Hubli-Chennai (M/s Spicejet) | 14th May, 2018 | |
| (ii) Hyderabad (Shamshabad) – Hubli – Hyderabad (Shamshabad) | 14th May, 2018 | |
| (iii) Chennai-Hubli-Chennai (M/s Indigo) | 1st May, 2018 | |
| (iv) Kochi-Hubli-Kochi | 28th June, 2018 | |
| (v) Goa-Hubli-Goa | 28th June, 2018 | |
| (vi) Ahmedabad-Hubli-Ahmedabad | 1st July, 2018 | |
| 20. | Jagdalpur | |
| (i) Raipur-Jagdalpur-Raipur | 14th June, 2018 | |
| (ii) Jagdalpur-Visakhapatnam-Jagdalpur | 20th June, 2018 | |
| 21. | Allahabad | |
| (i) Nagpur-Allahabad-Indore-Allahabad-Nagpur (M/s Jet Airways) | 16th June, 2018 8 | |
| (ii) Lucknow-Allahabad-Patna-Allahabad-Patna (M/s Jet Airways) | 14th June, 201 | |
| 22. | Kanpur | |
| IGIA Delhi-Kanpur-IGIA Delhi | 3rd July, 2018 |
In terms of the above Notification, VGF disbursed to Selected Airline Operators in respect of RCS Flights operated at above RCS Airports, Service Tax/GST exemption has been granted by Government of India, Ministry of Finance for such period as provided in the Notification from the date indicated against each RCS Airport as above.