GST APPLICABLITY ON TRANSFER OF BUSINESS BY AIRPORT AUTHORITY OF INDIA TO ADANI JAIPUR INTERNATIONAL AIRPORT LIMITED – (GST AAR RAJASTHAN)
RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Name:- Airports Authority of India (GST AAR Rajasthan)
Advance Ruling No. RAJ/AAR/2022-23/25
Date of Judgement/Order: 20th March 2023
RULING
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Rajasthan Goods and Services Tax Act, 2017)
Q.1 Whether the transfer of business by the Airport Authority of India to the M/s. Adani Jaipur International Airport Limited be treated as Supply u/s. 7 of the Central Goods and Service Tax Act, 2017 (“CGST”), viz-a-viz Rajasthan State Goods and Service Tax Act, 2017 (“RSGST”) ?
Ans.1 The Subject Supply of “Transfer of Going Concern service” is Supply under Section 7 CGST Act, 2017.
Q.2. Whether the transfer of business by Airports Authority of India to M/s. Adani Jaipur International Airport Limited is treated as supply as going concern and covered in clause 4 of schedule II of CGST Act viz- a-viz RSGST?
Ans.2 The subject Supply is ‘Transfer of Going Concern Service’ and the same is not covered in clause 4 of schedule II of CGST Act viz-a-viz RGST.
Q.3. Whether the transfer of business by M/s. Airports Authority of India to M/s. Adani Jaipur International Airport Limited is covered under the Entry No. 2 of the exemption notification No 12/2017 – Central Tax (Rate) dated 28-06-2017 issued u/s Section 11 of CGST Act 2017?
Ans.3. The subject Supply is covered at Entry No. 2 of Notification 12/2017-CT(R).
Q.4. If the answer is negative, then whether GST is leviable on the transfer of Existing assets (“RAB”), Aeronautical Assets, non- aeronautical assets and Capital work in progress by M/s. Airport Authority of India to the M/s. Adani Jaipur International Airport Limited?
Ans.4. Ruling not required, in pursuance to Ruling at serial no 3.
Q.5. Whether the aforesaid transfer of asset be treated as services and the classification for the same?
Ans.5. Ruling not required, in pursuance to Rulings at serial no 2 & 3
Q.6. Whether the concession fees paid by M/s. Adani Jaipur International Airport Limited to M/s. Airports Authority of India be treated as consideration for transfer of business?
Ans.6. Concession Fee is a part of the Consideration paid by SPV to AAI in subject matter
Q.7. Whether GST is applicable on Monthly/Annual concession fees charged by the Applicant on the M/s. Adani Jaipur International Airport Limited? If Yes, What rate?
Ans.7. The consideration for the subject Supply is exempt from GST vide Entry No. 2 of Notification 12/2017-CT( R) dated 28-6-2017
Q.8. Whether GST is leviable on the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Jaipur International Airport Limited? If yes, at what rate ?
Ans.8. Yes, at the rate of 18% (9 % CGST and 9% SGST)
Q.9. Whether GST is applicable on the reimbursement claimed of Municipal tax, Property Tax and Water Charges by the Applicant from M/s. Adani Jaipur International Airport Limited? If yes, at what rate?
Ans.9. No
Q.10. Whether any reversal is required in accordance with section 17 (2)/ (3) of CGST Act viz-a-viz RGST Act?
Ans.10. Yes
