Drone News

Drone Industry Could Benefit from Uniform 5% GST Rate

Posted by

Pradipta V Mukherjee

September 3, 2025

On September 3, 2025

The Goods and Services Tax (GST) Council is considering imposing a uniform 5% GST rate on all commercial drones, which could soon result in a significant policy change for India’s drone industry. Long-standing misunderstandings regarding tax classification, which have hampered one of the nation’s fastest-growing technology sectors, are intended to be cleared up by the proposal.

The Problem of Classification

Currently, drones are classified into various tax brackets based on their classification:

Business-use drones (HSN 8806) attract 5% GST.
Camera-equipped drones (HSN 8525) fall under 18%.
Personal-use drones, also under HSN 8806, face a steep 28%.

For manufacturers, startups, and drone service providers, compliance has become difficult due to this patchwork of rates.

Fitment Committee’s Recommendation

The GST Council‘s fitment committee has suggested a uniform rate of 5% for all commercial drones in order to address this. Concerns about classification conflicts deterring adoption and slowing the pace of drone integration across sectors have been voiced by industry groups on numerous occasions.

Why It Matters for the Drone Ecosystem?

The drone market in India has expanded quickly, with almost 488 businesses receiving $518 million in funding so far. Startups and businesses may save money with a lower and more consistent GST rate, which would also make financial planning easier.

More significantly, the action is anticipated to promote broader drone use in public safety, infrastructure inspection, logistics, agriculture, and surveillance. Additionally, low-cost drones could support cutting-edge initiatives like disaster relief and precision farming.

Policy Alignment with Drone Growth Vision

The plan is in line with the government’s larger initiatives to hasten the uptake of drones. Recent changes consist of:

Permitting unpermitted drone operations in green zones up to 400 feet.
In 2023, the Drone Rules will be amended to streamline licensing and approvals.
Introducing programs like Namo Drone Didi to provide agricultural drones to women-led farming organizations.

The Bigger Picture

The uniform 5% GST rate, if approved, would streamline taxes and support India’s goal of becoming a global center for drone technology by 2030.

The plan demonstrates a strong commitment to fostering the development of an industry that has the potential to revolutionize public safety, logistics, and agriculture in the ensuing ten years by cutting costs, eliminating uncertainty, and bringing policy into line with innovation.

Pradipta V Mukherjee

CEO, Mavdrones

Pradipta V Mukherjee is the visionary CEO of Mavdrones & Drone Pathshala, driving innovation and growth in the drone industry. With a passion for advanced technology, he leads the company's strategic direction, ensuring Mavdrones stays at the forefront of drone solutions. Under his leadership, Mavdrones has achieved remarkable success, including winning the 'Best Innovation and Technology in Drone Industry' award from ASSOCHAM. Pradipta is committed to revolutionizing the industry through advanced UAV technology, fostering a culture of excellence and forward-thinking within the organization.