SC stops CBIC from demanding backdated IGST on aircraft parts
The Supreme Court has blocked the tax department (CBIC) from demanding backdated IGST on aircraft parts that airlines like IndiGo sent abroad for repairs and then brought back.
The CBIC tried to apply a 2021 rule all the way back to 2017, but the court ruled that retrospective application was not permissible.
This move gives airlines much-needed clarity and saves them from nearly ₹100 crore in unexpected tax bills.
For airlines, this ruling means they won't face surprise costs
For airlines, this ruling means they won't face surprise costs or tricky paperwork for repairs done years ago—just regular duties on repair expenses, as before GST.
The court's decision also sets a clear boundary: new tax rules can't be pushed onto old transactions.
It's a win for stability in aviation and helps keep airline operations a bit more predictable.