Lower GST Set To Boost Drone Usage In Agriculture, Last-Mile Delivery: Aviation Minister

The next-generation Goods and Services Tax reforms, under which drones will now be taxed at 5% regardless of configuration or use-case, is seen as a catalyst to propel drone adoption across sectors ranging from agriculture to logistics, Civil Aviation Minister Ram Mohan Naidu said on Tuesday.

Previously, drones with integrated cameras were taxed at 18%, while those classified for personal use attracted a 28% GST. Under GST 2.0, however, a uniform rate of 5% will be levied on all drones, regardless of whether the camera is integrated or separate, and irrespective of whether they are used for commercial or personal purpose, recognising these unmanned aerial vehicles (UAVs) as both an economic opportunity and a strategic necessity.

"It is going to be a big boon for the consumers and at the same time a big boost for the Indian manufacturers," Naidu said. "This significant measure will also enable India to emerge as a leader in transformative technologies like drones. A uniform 5% GST will now apply on all drones, providing significant policy certainty and eliminating classification disputes."

Greater clarity for manufacturers and lower costs for users is also expected to boost drone adoption, especially in sectors like agriculture (crop monitoring, pesticide spraying), petroleum and mining (pipeline and asset inspection), infrastructure (surveying and mapping), logistics (last-mile delivery) and defense/security (surveillance and rapid response), the minister said, adding that the GST 2.0 reforms aligns with India's vision to build a robust, safe, and globally competitive drone ecosystem.

Additionally, the GST exemptions on flight and motion simulators—essential for drone pilot training — are expected to reduce costs for airlines and academies.

The GST rationalisation is also expected to create employment opportunities in drone manufacturing, assembling, software development, data analytics, and field operations, further embedding UAVs in India's economic future, the minister said. "The sunrise sector of drones will benefit significantly with the simplified regime."