In re Airports Director Airport Authority of India (GST AAR Uttar Pradesh)
Question 1- Whether the transfer of business by the Airport Authority of India to the M/s. Adani Lucknow International Airport Limited be treated as Supply u/s. 7 of the Central Goods and Service Tax Act, 2017 (CGST) viz-a-viz Uttar Pradesh State Goods and Service Tax Act, 2017 (UPGST)?
Answer 1- The Subject Supply of ‘Transfer of Going Concern service’ is Supply under Section 7 CGST Act, 2017.
Question 2- Whether the transfer of business by Airports Authority of India to M/s. Adani Lucknow International Airport Limited is treated as supply as going concern and covered in clause 4 of schedule II of CGST Act viz-a-viz UPGST?
Answer- 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 UPGST.
Question 3- Whether the transfer of business by M/s. Airports Authority of India to M/s. Adani Lucknow 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?
Answer 3- The subject Supply is covered vide Entry No. 2 of notification No 12/2017 — Central Tax (Rate) dated 28-06-2017.
Question 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 Lucknow International Airport Limited?
Answer 4- Ruling not required, in pursuance to Ruling at serial no 3.
Question 5- Whether the aforesaid transfer of asset be treated as services and the classification for the same?
Answer 5- Ruling not required, in pursuance to Rulings at serial no 2 & 3.
Question 6- Whether the concession fees paid by M/s. Adani Lucknow International Airport Limited to M/s. Airports Authority of India be treated as consideration for transfer of business?
Answer 6- No.
Question 7- Whether GST is applicable on Monthly/Annual concession fees charged by the Applicant on the M/s. Adani Lucknow International Airport Limited?If yes at what rate?
Answer 7- No
Question 8- Whether GST is leviable on the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Lucknow International Airport Limited ? If yes at what rate?
Answer 8 — Yes, at the rate of 18% (9 % CGST and 9% SGST).
Question 9- Whether GST is applicable on the reimbursement claimed of Municipal tax, Property Tax and Water Charges by the Applicant from M/s. Adani Lucknow International Airport Limited? If yes at what rate?
Answer 9- No.
Question 10- Whether any reversal is required in accordance with section 17 (2) /
(3) of CGST Act viz-a-viz UPGST Act?
Answer 10- Yes.
This ruling is valid only within the jurisdiction of Authority for Advance Ruling Uttar Pradesh and subject to the provisions under Section 103(2) of the CGST Act, 2017 until and unless declared void under Section 104(1) of the Act.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,UTTAR PRADESH
1. M/s AIRPORTS AUTHORITY OF INDIA, CHAUDHARY CHARAN SINGH INTERNATIONAL AIRPORT, AMAUSI, LUCKNOW-226009 (here in after referred to as the applicant) is a registered assessee under GSTN: 09AAACA6412D1Z6.
2. The applicant has filed application for advance ruling in Form ARA-01 and submitted as under-
(1) Airports Authority of India (the `AAI’) is the authority created under the Airports Authority of India Act, 1994 (the ‘AAI Act’). AAI Act was enacted to provide for the constitution of the AAI for the better administration and cohesive management of the airports.
(2) As per Chapter III, Section 12 (1) & (2) of AAI Act, the functions of the AAI are:
