Aircrafts classifiable under CTH 8802 & attracts GST 5%: GST AAR Gujarat

In re Tata Advanced Systems Ltd. (GST AAR Gujarat)

(i) What is the nature of supply under the contract between the applicant & Airbus [i.e. whether the same will qualify as ‘supply of goods’ or supply of service’]?

The nature of supply under the contract between the Applicant and Airbus is a composite supply in terms of section 8 of the CGS’I’ Act, 2017 wherein the principal supply is supply of aircraft (i.e., ‘supply of goods’.

(ii) Given the nature of the activities undertaken by the applicant under the contract, what will be the appropriate classification & rate of tax of the said supply?

The aircrafts are classifiable under CTH 8802 & will attract GST 5% in terms of notification No. 1/2017-IT (Rate) dated 28.6.2017 entry no. 2441.

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