How an aircraft is classified on import changes the tax bill by roughly four times. Here's the distinction that actually drives the cost, and the approvals required either way.
India taxes an imported aircraft differently depending on how it will actually be operated — and the gap between the two is enormous.
Aircraft imported for genuine commercial charter use, operated under a Non-Scheduled Operator's Permit, attract Basic Customs Duty of 2.5%, a 10% Social Welfare Surcharge on that duty, and 5% IGST — provided every flight is properly invoiced and GST on charter revenue is paid on an ongoing basis. This is far lower than private-use import, but it is not duty-free.
Aircraft imported for private use — not available for charter — are taxed as personal aircraft: 28% GST plus a 3% compensating cess, on top of basic customs duty (approximately 2.5–3%) and a social welfare surcharge. Courts have upheld that this classification is strictly enforced.
Why this matters: A Delhi High Court ruling confirmed that an aircraft imported and subsequently used for private purposes does not qualify for the commercial-use duty concession, even if it was initially imported under that classification. The intended use has to be genuine and consistently maintained — this is not a box to tick once and forget.
Under the Income Tax Act, aircraft are depreciated at 40% on the Written Down Value (WDV) — the same category as power plants and ships, and one of the highest rates in the depreciation schedule.
WDV depreciation is calculated each year on the remaining value, not the original cost — so the deduction shrinks every year rather than staying fixed. There is no statutory maximum number of years for this: aircraft sit in a "block of assets" under Section 32, and depreciation continues on that block for as long as it holds an asset with a positive written-down value. The block only closes if all assets in it are sold or its WDV falls to nil.
In practice: while there's no legal cap on the number of years, the deduction becomes small enough within 7–10 years that most operators treat that as the practical window for meaningful depreciation benefit. Additions to the same block (e.g. a second aircraft) restart the calculation for that portion of the block's value — this is genuinely specific to your fleet structure, so confirm the actual numbers with your chartered accountant before relying on them for a purchase decision.
Depreciation is only part of the picture. How the aircraft is actually used changes what it really costs you.
Where the aircraft is genuinely used for business travel, running costs — fuel, crew, maintenance, landing and parking — are treated as a business travel expense, offsetting against taxable income on the balance sheet alongside depreciation. This meaningfully reduces the net cost of every flight, though it doesn't eliminate the underlying cash cost of operating the aircraft.
When the aircraft is in active use for your own business travel, that usage is itself the offset — genuine commercial trips, properly recorded, doing the work described above.
When the aircraft isn't needed for your own travel, Enthral Aviation can place it into charter through our aircraft management service — generating revenue from the hours it would otherwise sit idle, further offsetting ownership cost.
Put together: between the deductibility of operating costs, depreciation, and charter revenue on downtime, the effective net cost of ownership drops substantially compared to the sticker price — while you retain full private use of the aircraft when you need it. The exact numbers depend entirely on your usage pattern, structure, and applicable tax treatment, so this is worth modelling properly with your CA before you commit — but the underlying idea is real, not a sales line.
Tax classification is only part of it — regulatory approval has to happen first, regardless of use case.
The first step for any operator (scheduled or non-scheduled) wishing to import an aircraft. Valid for three years.
Required after the DGCA NOC, before the aircraft can actually be imported or acquired. Valid for one year.
For private imports specifically, an import licence from the Directorate General of Foreign Trade is also required.
Aircraft older than 18 years generally cannot be imported for passenger operations, though the DGCA can waive this in certain circumstances.
Once permission is granted, a temporary certificate of registration may be issued, allowing the aircraft to be flown into India.
Note: Customs duty, GST, and cess rates on aircraft imports are set by government notification and change with Union Budget announcements. The figures on this page reflect publicly available guidance at the time of writing and are provided for general understanding only — they are not a substitute for a current assessment from a customs broker or aviation tax advisor before any actual import.
Tell us the aircraft and intended use — we'll help you think through the actual numbers.
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Aircraft featured on this website are made available through Enthral Aviation's trusted network of certified charter operators, unless specifically identified as owned or exclusively managed by Enthral Aviation.