In re Biman Bangladesh Airlines Limited (GST AAR West Bengal)
Biman Bangladesh Airlines Limited, an international airline operating through branch offices in Kolkata, Delhi and Chennai, sought an advance ruling on the GST treatment of international passenger transportation services in different boarding and continuous-journey scenarios. The applicant operates exclusively international flights and does not provide domestic flight services within India. The application also subsequently raised the issue of transportation of human remains from outside India to India and vice versa.
The Authority considered the place-of-supply provisions applicable to passenger transportation under the Integrated Goods and Services Tax Act, 2017. The applicant relied principally on Sections 12(9) and 13(9) of the IGST Act, contending that the place where the passenger embarks determines the place of supply. The Authority considered the corresponding provisions, including Section 13(10), which provides that the place of supply in respect of passenger transportation services is the place where the passenger embarks on the conveyance for a continuous journey.
For a passenger boarding outside India and travelling to India, such as Dhaka to Kolkata, the Authority held that the place of embarkation is outside India. Accordingly, the place of supply under Section 13(10) is outside India and the provisions of the GST Acts do not apply to the transaction, where the ticket or invoice relates only to that journey and there is no return journey.
