India introduces tax exemption for defence imports

22 September 2019

The Indian government has removed goods taxes on defence imports for the next five years in a move to support military modernisation.

A statement by the Indian finance ministry on 20 September said that “imports of specified defence goods not being manufactured indigenously” will be exempt from goods and services tax (GST) and Integrated GST until 2024.

The ministry did not specify the type of defence goods. The decision was reached in a meeting of the Indian government’s GST Council, which is chaired by finance minister Nirmala Sitharaman.

GST, which was introduced in 2017, is described as a destination-based tax, levied where goods and services are consumed.

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at

(131 of 299 words)