In re Airbus Defence and Space SA (GST AAR Gujrat)
Summary: The Gujarat Authority for Advance Ruling considered whether Airbus Defence and Space S.A., Spain, through its Project Office in India, was liable to pay GST on the supply of forty C-295 aircraft to the Ministry of Defence and whether it was required to obtain GST registration in Gujarat.
Under the Aircraft Contract dated 24.09.2021, Airbus was to supply fifty-six C-295MW aircraft, of which sixteen were to be delivered ex-works from Spain and forty were to be manufactured in India by Tata Advanced Systems Ltd. (TASL), the appointed Indian Aircraft Contractor, at its facility in Vadodara, Gujarat.
Airbus entered into an IAC Contract dated 29.10.2021 with TASL for manufacture and supply of the forty aircraft. The Authority examined the transaction under [Section 7 of the CGST Act, 2017](https://taxguru.in/goods-and-service-tax/section-7-scope-supply-cgst-act-2017.html), including Schedule II, and noted that the aircraft constituted “goods” and that the transaction involved consideration in the course or furtherance of business. The applicant was to procure the aircraft from TASL at Vadodara and subsequently supply them ex-works to the Ministry of Defence at the same location. Title and ownership were to transfer to the applicant at the IAC facility upon execution of the Acceptance Certificate, following which the aircraft were to be accepted by the Ministry of Defence.
The Authority therefore concluded that the transaction constituted a supply of goods under Section 7 read with Entry 1(a) of Schedule II and was liable to GST. The Authority also examined Notification No. 10/2025-Central Tax (Rate), dated 17.09.2025, and concluded that no exemption was available to the aircraft under the notification. On registration, the Authority referred to Sections 22, 24 and 25 of the CGST Act and observed that manufacture and subsequent supply of the forty aircraft were undertaken in Gujarat and that the transaction value substantially exceeded the applicable threshold.
It consequently ruled that the applicant was required to obtain GST registration in Gujarat. The ruling answered both questions in the affirmative: the Project Office was liable to pay GST in India on the supply of forty aircraft to the Ministry of Defence and was required to obtain GST registration in Gujarat.
The subsequent rectification portion records that a clerical error in the applicant’s name and address in the original order was corrected under Section 102 of the CGST Act and the corresponding GGST Act provision, while expressly clarifying that all other contents, interpretations, classifications and rulings remained unchanged.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
1. Airbus Defence and Space S.A., Spain (having a project office namely M/s. Airbus Group India Pvt. Ltd. Located at Plot No.509-510, Udyog Vihar, Phase-3, Sector-20, Gurugram-122008, Haryana)(hereinafter referred to as the applicant)) was awarded a contract dated 24.09.2021 (hereinafter referred to as ‘Aircraft Contract’) by the Ministry of Defence, Government of India (`MoD’) for the supply of ‘fifty six’ C-295MW (C-295 programme) aircrafts along with associated equipment, as follows:
i. First sixteen aircrafts shall be delivered ex-works at Airbus Defence and Space S.A. facilities in Spain, in flyaway condition;
ii. Forty aircrafts shall be manufactured in India by an appointed Indian Aircraft Contractor (`IAC’) in India, as per the terms of the scope agreed between Airbus Defence and Space S.A. and the IAC, and delivered, ex-works at IAC’s facility in India.
iii. The Aircraft Contract consists of delivery of aircraft, role equipment, manufacture of the recommended list of spares, ground support equipment, ground handling equipment, special test equipment, and training services and provision of technical literature.
iv. The delivery of all aircrafts is scheduled to be completed within 120 mcattils’!’4 effective date of the contract.
(v) Under the C-295 programme, Tata Advanced Systems Ltd. (`TASU) has been appointed as the IAC (Indian Aircraft Contractor to the Government of India) for the manufacture and supply of the forty aircrafts (i.e. make in India component). Correspondingly, a contract dated 29.10.2021 (hereinafter ‘JAC Contract’) has been entered into between Airbus Defence and Space S.A. and TASL for the manufacture of the forty aircrafts and all other equipment to be onward supplied by Airbus Defence and Space S.A. to the Ministry of Defence (MoD).
2. Further, in the context of this application, some of the relevant clauses of the Aircraft Contract, as submitted by the applicant arc as follows:
a. Forty aircrafts shall be delivered ex-works to MoD at IAC facility (Article 11).
b. Warranty shall be provided by Airbus for all types of defects/failures for a period of 960 flying hours or two years, whichever is earlier from the date of acceptance of the aircraft (Article 15.2.1).
c. All taxes, duties, levies and charges which are to be paid for the delivery of supplies under the contract, shall be paid by the parties in their respective countries (Article 18.1).
d. Airbus Defence and Space S.A. to provide product support for the supplies, assemblies/sub-assemblies, fitment items and consumables subcontracted from other agencies/manufacturer by Airbus for a period of 25 years including the two years of warranty period after the delivery of the supplies. Airbus Defence and Space S.A. to undertake maintenance contract for a maximum period of service life of the aircraft (Article 30.1).
(e)Airbus Defence and Space S.A. to provide training to the personnel of Indian Air Force (Article 31).
f. Production technology shall be transferred by Airbus Defence and Space S.A. to IAC, for manufacture of the forty aircrafts (make in India) (Article 36.1).
g. Airbus Defence and Space S.A. shall be solely responsible for standard of performance, performance, quality and delivery of forty aircrafts manufactured by IAC (Article 35.3).
h. The deliveries of the make in India aircrafts (forty in number) shall commence from 60 months of signing of the Aircraft Contract and be completed within 119 months as per the delivery schedule (Article 36.5).
i. The total consideration under the Aircraft Contract comprises Euro 1,403.66 Mn., USD 695.74 Mn. and INR 19,415.00 Mn.
3. The applicant has submitted that on the other hand, some of the relevant clauses of the IAC Contract are as follows:
(a) TASL shall undertake the manufacture and supply of forty aircrafts related deliveries and provide support activities (including certification and . conntnured airworthiness) for India C-295 programme.
b. TASL to provide status reports to Airbus or, MoD via Airbus Defence and Space S.A. to inform about the India C-295 programme performance.
c. TASL shall provide Airbus Defence and Space S.A. with tax certificate that contains TASL’s GST number. The contract price does not include any taxes, customs duty to be paid in India or abroad.
d. In other words, the prices are exclusive of taxes – All taxes, duties, levies and charges which are to be paid for the delivery of supplies under the contract, shall be paid by the parties in their respective countries.
e. TASL undertakes to meet such requirements as a professional expert in all aspects of the development, production, manufacture, supply and support of the aircrafts.
f. Aircrafts shall be delivered ex-works at TASL’s delivery centre facilities in India.
g. Title and risk of the aircraft will transfer to Airbus Defence and Space S.A. upon signature of the Acceptance Certificate.
h. The total consideration payable under the IAC Contract consists of Euro 57.92 Mn., USD 67.86 Mn. and INR 19415.00 Mn.
4. The applicant has further submitted that TASL has set up the Final Assembly Line (TAU) in Vadodara, Gujarat for manufacture of the forty aircrafts (C-295W), and the FAL became fully operational in the month of October 2024. TASL is registered for GST in the State of Gujarat (GSTIN 24AACCT5245K1Z9). In order to fulfil the obligations under the Aircraft Contract and to discharge applicable GST on the aircrafts manufactured in India, Airbus Defence and Space S.A., after obtaining permission of the Authorised Dealer (`AD’) bank viz. BNP Paribas branch New Delhi, had set up a Project Office in Haryana, India (hereinafter referred to as ‘applicant’), Consequently, the applicant has set up a project office in Gurgaon, Haryana with GST registration and is in the process of setting up an office in state of Gujarat as a Project Office, and it will thereafter obtain GST registration in State of Gujarat. For the execution of the Aircraft Contract and discharge of its contractual obligation under the Aircraft Contract, Airbus Defence and Space S.A. has entered into an agreement with Airbus India Pvt. Ltd. (hereinafter `AIPL’), an Indian company, whereby AIPL is obligated to provide support services to the Applicant and to assist it in completion of the C-295 programme deliverables.
5. The Applicant has sought Advance Ruling on the following question:
a. Whether the applicant (Project Office) is liable to pay GST in India on the supplies of forty aircrafts made to the Ministry of Defence, Government of India pursuant to the platform contract.
b. If the applicant is liable to pay GST on the supply of forty aircrafts (issue (a)), whether the applicant is required to obtain GST registration in State of Gujarat.
6. Applicant’s interpretation of law is as under:
> Airbus Defence and Space S.A., Spain, was awarded the Aircraft Contract dated September 24, 2021, by the MoD for supply of fifty six C-295 aircrafts. The manufacture and delivery of the first sixteen aircrafts to MoD was made outside India and in respect of which no activities were undertaken in India i.e. such supply was wholly outside the territory of India.
>Forty aircrafts are to be manufactured and delivered in India, by an IAC at the IAC facility, as per the terms and conditions agreed and reflected under the IAC Contract. The delivery will be ex-works at the IAC
>The said IAC, viz. TASL has set up the facility in Vadodara, in the State of Gujarat and is registered for GST, holding GSTIN 24AACCT5245K1Z9.
>For the manufacture of the aircrafts, various parts, components, assemblies, subassemblies, etc. and similar services will be procured by TASL in India, domestically and from outside India.
>Airbus Defence and Space S.A. has set up a Project Office (i.e. applicant) in Haryana, India with the permission of the AD Bank to fulfil its obligations under the Aircraft contract.
>The applicant, in order to fulfil its contractual obligations under the Aircraft Contract shall make an ex-works inward supply (procurement) of the aircrafts from the IAC in Vadodara, and thereafter, deliver these aircrafts (outward supply), ex-works in Vadodara, Gujarat to the MoD.
>The procurement of the aircrafts and the associated equipment will take place in India in Gujarat and thereafter be supplied to the MoD in India in Gujarat.
>In a nutshell, it is submitted that the C-295 is a product of the applicant-entity and pursuant to the platform contract, akin to a manufacturer-trader, it has outsourced the production activity to TASL (in the context of C-295 programme in India), and whereby it shall procure the aircrafts from TASL and supply it to MoD as per the platform contract.
>It has been indicated by TASL (the IAC) that it shall apply GST @ 5% (HSN code 8802), as is currently applicable to such aircrafts and, the applicant believes, it can avail the input tax credit (`ITC’) of such tax (CGST and SGST) charged by TASL, and utilize it to pay the applicable tax on supply made to MoD.
>The applicant is in the process of setting up premises and project office in the State of Gujarat, more particularly, in Vadodara, for the discharge of its contractual obligations and payment of GST on the forty aircrafts.
>Hence, the issue in the present application is whether the Applicant is liable to pay GST in India on the “supply” of forty aircrafts under the Aircraft Contract, to the MoD and thereby obtain the GST registration in Gujarat.
As per Section 7(1)(a) of the Central Goods and Services Tax Act, 2017(“CGST Act”), the term “supply” includes: (1) (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
……
(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II. (Emphasis supplied).
> The scope of the term “supply” is wide enough to include all forms of supplies of `goods’ or ‘services’ carried out in the course of or furtherance of ‘business’ for a `consideration’.
>In the present case, Airbus Defence and Space S.A. (i.e. Applicant) is required to manufacture and supply forty aircrafts to MoD. There is a consideration payable by MoD for the said transaction, and it is in the course or furtherance of business of applicant. Accordingly, the said transaction of supply of forty aircrafts in Gujarat qualifies as a ‘supply’, in terms of section 7 of the CGST Act.
>As per section 7(1A) read with Entry 1(a) of Schedule II any transfer of the title in goods is a supply of goods. Therefore, the activity of sale of aircraft is a ‘supply’ of goods.
>The AD Banker has given the permission for setting up of the project office in India to perform the activities under the Aircraft Contract. Accordingly, the applicant has obtained an office space in Haryana and is in the process of obtaining an office space in Gujarat.
>As per Explanation to Section 8, which is applicable to the entire Integrated Services ‘fax Act, 2017, Airbus Defence and Space S.A. and its Project shall be regarded as ‘distinct persons’.
The relevant extract of the Explanation is as follows:
“Explanation For the purposes of this Act, where a person has,— (i) an establishment in India and any other establishment outside India; (ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.
Explanation 2. – A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.’
> Applicant has entered contract with TASL for manufacture and supply of the forty aircrafts. It has also entered contract with AIPL to provide support services to assist in completion of the C-295 programme. Thus, the transactions are being undertaken in relation to manufacture, and sale of aircrafts being manufactured and supplied in India.
> In respect of these forty aircrafts, manufactured in India title and ownership shall be transferred to applicant at IAC’s facility i.e. Gujarat, upon signature of Acceptance Certificate and it shall be deemed that the aircrafts have been thereafter accepted by the MoD.
> The transfer of title and ownership takes place in Gujarat once the acceptance certificate is issued by the applicant to IAC. The applicant is playing the role of a manufacturer-trader whereby the goods are purchased from a vendor in India and thereafter sold to a customer in India.
> Notably, there is no movement of any of the forty aircrafts outside India once it is manufactured by TASL and supplied to Applicant and when the aircrafts arc thereafter supplied to MoD. The aircrafts remain in India throughout the chain of these transactions. The delivery of Indian manufactured aircraft to Applicant is at IAC facility in Vadodara, Gujarat and thereafter upon issuance of acceptance certificate at the same spot, title is transferred to MoD.
> The manufacturing, purchase. sale. delivery, physical possession of forty aircrafts, i.e. everything is for and in this connection undertaken in India.
> The aircrafts are to be manufactured by TASL, in Gujarat & the applicant shall be solely responsible to MoD for performance, quality and delivery of forty aircrafts
> To discharge the GST on the aircraft manufactured and supplied in India, a Project Office has been set up in Haryana, India with the permission of the AD Bank. Since the title and ownership of the goods (i.e. aircraft) is transferred in Gujarat, India, to the applicant and the goods are also subsequently sold in Gujarat, India, to MoD, the transaction is subject to levy of GST.
> The supply of aircrafts from the applicant tolMoD will take place in the taxable territory, more specifically Gujarat and so, the applicant is required to obtain the GST registration in Gujarat.
> As per Section 22 of the Central Goods and Services Tax Act, 2017,, a person shall be liable to be registered in the State from where the taxable supply of goods or services are made and the aggregate turnover exceeds Rs. 20 lakhs.
> In the present case, the supply of forty aircrafts will be made from Gujarat and the threshold of Rs. 20 lakhs will be exceeded, accordingly, the applicant is liable to obtain the GST registration in Gujarat (the location where the supply is ade) and pay intrastate tax in the State of Gujarat.
> Further, under the GST law, the supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering India shall neither be regarded as supply of goods nor as supply of services. Thus, the law itself recognizes that where there is out and out movement of goods, such transactions are not liable to GST and accordingly, specifically excluded from ‘supply’.
> In the present case, forty aircrafts are manufactured in India by TASL and are sold in India to the applicant in India i.e. within the taxable territory, and the subsequent sale to the MoD is also in India. Therefore, such transactions for supply of forty aircrafts are taxable in India.
> The supplies made by TASL to the applicant shall be subject to GST and the subsequent sale by the applicant shall also be subject to GST. The Applicant in respect of procurement of aircraft or other goods/services procured from TASL and other vendors related to the supply of forty aircrafts to MoD shall be eligible for input tax credit (`ITC’) on such procurements in terms of section 16 of the CGST Act, as the relevant conditions will be fulfilled.
> It is the applicant’s understanding and belief that it is required to pay intra-state GST on the supply of forty aircrafts to MoD, supplied under the Aircraft Co thereby required to obtain GST registration in the State of Gujarat.
7. Personal hearing was granted on 06.08.2026 wherein Shri Ranject Mehtani. Advocate, appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. During the course of personal hearing, the representative of the applicant reiterated the submissions made by the applicant along with their application for Advance Ruling. The representative, during the course of personal hearing, also referred to an AAR order issued by the Advance Ruling Authority of Haryana in respect of Airbus Defence and Space SA on a similar issue. On being asked by the jury to submit a copy of the said AAR order, the representative submitted a copy of the same.
Discussion and findings
8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.
9. We have considered the submissions made by the applicant in their application for advance ruling as well as the documents submitted by the representative of the applicant during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant’s submission/views in respect of the questions on which the advance ruling is sought.
10. As per the submission of the applicant, they were awarded a contract dated 24.09.2021 by the Ministry of Defence, Government of India (`MoD’) for the supply of ‘fifty six’ C-295MW (C-295 programme) aircrafts along with associated equipment, out of which sixteen aircrafts shall be delivered ex-works at Airbus Defence and Space S.A. facilities in Spain in flyaway condition and the remaining forty aircrafts shall be manufactured in India by an Indian Aircraft Contractor to the Government of India (`IAC’) (under the C-295 programme) in India i.e. Tata Advanced Systems Ltd. (`TASL’) as per the terms of the scope agreed between Airbus Defence and Space S.A. and the IAC, and delivered, ex-works at IAC’s facility in India; that the delivery of all aircrafts is scheduled to be completed within 120 months from the effective date of the contract; that correspondingly, a contract dated 29.10.2021 (`IAC Contract’) has been entered into between Airbus Defence and Space S.A. and TASI, for the manufacture of the forty aircrafts and all other equipment to be onward supplied by Airbus Defence and Space S.A. to the Ministry of Defence (MoD).
10.1 The applicant has further submitted that TASL has set up the Final Assembly Line (`FAL’) in Vadodara. Gujarat for manufacture of the forty aircrafts (C-295W). and the FAL became fully operational in the month of October 2024; that TASL is registered for GST in the State of Gujarat (GSTIN 24AACCT5245K1Z9) and in order to fulfil the obligations under the Aircraft Contract and to discharge applicable GST on the aircrafts manufactured in India, Airbus Defence and Space S.A., after obtaining permission of the Authorised Dealer (`AD’) bank viz. BNPNew Delhi, had set up a Project Office in Haryana, India with GST reOstration a ii.”.04-the of setting up an office in state of Gujarat as a Project Office, and it will thereafter obtain GST registration in State of Gujarat; that for the execution of the Aircraft contract and discharge of its contractual obligation under the Aircraft Contract, Airbus Defence and Space S.A. has entered into an agreement with Airbus India Pvt. Ltd. (hereinafter `AIPL’), an Indian company, whereby AIPL is obligated to provide support services to the applicant and to assist it in completion of the C-295 programme delivery.
11. The Applicant has sought Advance Ruling on the following question:
a. Whether the applicant (Project Office) is liable to pay GST in India on the supplies of forty aircrafts made to the Ministry of Defence, Government of India pursuant to the platform contract.
b. If the applicant is liable to pay GST on the supply of forty aircrafts (issue (a)), whether the applicant is required to obtain GST registration in State of Gujarat.
12. The first question to be determined is whether the nature of the supply under the contract entered into between the applicant and the Ministry of Defence would qualify as ‘supply of goods’ or otherwise. The applicant feels that the contract entails supply of goods and their reasoning is based on the fact that in terms of the various clauses of the contract, the main responsibility thrust on the applicant is to supply 40 aircrafts as per the contract. For the purpose, a reference will be required to be made to the definition of ‘supply’ as appearing in Section 7 of the CGST Act, 2017. Section 7 of the said Act reads as under:
Section 7. Scope of supply.-
(1) For the purposes of this Act, the expression – “supply” includes-
a. all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
Explanation- For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;
b. import of services for a consideration whether or not in the course or furtherance of business; and
c. the activities specified in Schedule I, made or agreed to be made without a consideration;
d. ****
(1A) where certain activities or transactions constitute a supply in accordance with the provisions of subsection (1), they shall be treated either as supply of goods or supply of services as refered in Schedule
(2) Notwithstanding anything contained in sub-section (1),-
a. activities or transactions specified in Schedule III; or
b. such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (I), (1A) and (2), the Government may, on the recommendations of the Council, spec01, by notification, the transactions that are to be treated as-
a. a supply of goods and not as a supply of services; or
b. a supply of services and not as a supply of goods.
12.1 The definition of “consideration’ is defined at Section 2 (31) of the CGST Act, 2017 and reads as under:
(31) “consideration” in relation to the supply of goods or services or both includes-
a. any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
b. the monetary value of any act or forbearance, in respect of in response to, or for the inducement of the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:
Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;
12.2 The definition of goods is defined at Section 2(52) of the CGST Act, 2017 and reads as under:
(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
12.3 As per Section 7(1)(a) of the CGST Act,2017, ‘scope of supply’ covers all forms of supply of goods or services or both such as sale, transfer, barter. exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. In the present case, the applicant is required to manufacture and supply forty aircrafts to the Ministry of Defence (MoD) (which is being manufactured by M/s. Tata Advance Systems ltd. (who is registered in Vadodara, Gujarat and has been appointed as the IAC by the MoD)) and will be delivered ex-works (outward supply) to the MoD by the applicant at Vadodara in Gujarat. The applicant, in order to fulfil its contractual obligations under the Aircraft Contract shall make an ex-works inward supply (procurement) of the aircrafts from the IAC in Vadodara, deliver these aircrafts (outward supply), ex-works in Vadodara, Gujarat to the Mo fall under the definition of ‘goods’ as defined inSection 2(52) of the CGST Act, 2017. As per the contract, there is a consideration payable by MoD to the applicant for the transaction of supply of aircrafts made to them by the applicant which is in the course or furtherance of the business of the applicant. Further, as per the applicant’s submission, title and ownership in respect of these forty aircrafts manufactured in India shall be transferred to the applicant at IAC’s facility in Gujarat, upon signature of Acceptance Certificate and it shall be deemed that the aircrafts have been thereafter accepted by the MoD and that the transfer of title and ownership takes place in Gujarat once the acceptance certificate is issued by the applicant to IAC. As per Section 7(1A) read with Entry 1(a) of Schedule II of the CGST Act, 2017, any transfer of the title in goods is a supply of goods. Therefore, in view of the above discussions, it can be safely concluded that the activity of transaction of supply of forty aircrafts in Gujarat by the applicant to MoD qualifies as ‘supply’, in terms of Section 7 of the CGST Act, 2017 read with Entry 1(a) of Schedule II of the said Act and the said transaction is liable to GST at applicable rate in respect of such supply.
Further, as the aircrafts in question are being supplied by the applicant to the MoD, we also need to find out whether there is any exemption available on the same for which a reference is required to be made toNotification No.10/2025-Central tax (Rate) dated 17.09.2025 which covers an exhaustive list of goods that are exempted from GST. On going through the exhaustive list of goods covered under the said notification, we find that there is no exemption available to aircrafts under any of the entries. We, therefore, find and conclude that no exemption is available to the aircrafts supplied by the applicant to the MoD under GST.
We, therefore, find and conclude that the transaction of supply of aircrafts by the applicant to the MoD is liable to GST.
13. Now, we move on to the next question i.e. whether the applicant is required to be registered in the state of Gujarat or otherwise. As discussed earlier, Airbus Defence and Space S.A., based in Spain is having a project office namely M/s. Airbus Group India Pvt. Ltd., (registered with GST) which is located at Plot No.509-510, Udyog Vihar, Phase-3, Sector-20, Gurugram-122008, Haryana. Further, as submitted by the applicant, the entire process of manufacture of the aircrafts (undertaken by M/s. TASL who is appointed as IAC by the Government of India) as well as supply of the same to the MoD is undertaken by the applicant in the state of Gujarat. In this regard, we find it prudent to refer to the relevant Sections i.e. Sections 22, 24 & 25 of the CGST Act, 2017 which pertains to registration under the GST law.
22. Persons liable for registration.
(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.
Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.
Explanation.—For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.
(2) ——
(3)———
(4)——–
Explanation.—For the purposes of this section,
i. the expression aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
ii. the supply of goods, after completion of job work——– worker;
iii. the expression “special category States” shall mean the States as specified in sub clause (g)- – – –
24. Compulsory registration in certain cases. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,—
i. persons making any inter-State taxable supply;
ii. casual taxable persons making taxable supply;
iii. persons who are required to pay tax under reverse charge;
iv. person who are required to pay tax under sub-section (5) of section 9;
v. non-resident taxable persons making taxable supply;
vi. persons who are required to deduct tax under section 51————————————————————————– Act;
vii. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
viii. Input Service Distributor———— Act;
ix. persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
x. every electronic commerce operator
xi. every person supplying online information and database access———— registered person;
(xia) every person supplying online money gaming——— in India; and]
xii. such other person or class of persons as may be notified by the Government on the recommendations of the Council.
25 Procedure for registration.
1. Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.
Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory. Explanation.— Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
1. A person seeking registration under this Act shall be granted a single registration in a State or Union territory: Provided that a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.
2. A person, though not liable to be registered under section 22 or section 24 may———
3. A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
4. Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act.
5. Every person shall have a Permanent Account Number issued under the Income- tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration:
Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.
(6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed..
Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe: Provided further that in case offailure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act sh such person does not have a registration.
On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, spec in in the said notification: Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notcation.
6B. On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government niay, on the recommendation of the Council, specify in the said notification..
Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification. (6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof as the Government may, on the recommendations of the Council, specify by notification.
Explanation.—For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 20.161.
7. Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis of such other documents as may be prescribed.
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9. ——–
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11. ……………
12. ………….
13.1 Section 25(1) of the CGST Act, 2017 specifically states that “every person who is liable to be registered under Section 22 or Section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable for registration, in such manner and subject to such conditions as may be prescribed. The entire process of manufacture (by IAC) and subsequent supply of the forty aircrafts to the MoD, ex-works (outward supply), by the applicant, is being carried out in the State of Gujarat. Further, the present threshold limit/exemption limit for goods in states (other than special category states) is Rs.20 lakhs. However, the transaction value of the aircrafts to be supplied to the MoD in the state of Gujarat is much higher than the threshold limit of Rs. 20 lakhs i.e. Rs.19,415 million. In view of the above discussions, we find and conclude that the applicant will be required to obtain registration in the state of Gujarat in terms of Section 25 of the CGST Act, 2017 read 22 and 24 of the said Act.
14. In view of the above, we rule as under: –
RULING
Question-(a): Whether the applicant (Project Office) is liable to pay GST in India on the supplies of forty aircrafts made to the Ministry of Defence, Government of India pursuant to the platform contract.
Answer-(a): Yes, the applicant (Project Office) is liable to pay GST in India on the supplies of forty aircrafts made to the Ministry of Defence, Government of India pursuant to the platform contract for the reasons discussed in paras supra.
Ouestion-(b): If the applicant is liable to pay GST on the supply of forty aircrafts (issue (a)), whether the applicant is required to obtain GST registration in State of Gujarat.
Answer-(b): The applicant is required to obtain GST registration in the State of Gujarat for the reasons discussed in paras supra.
Subsequent rectification portion
WHEREAS, an Advance Ruling Order No. GUJ/GAARJR/2026/34 dated 11/09/2026 was issued to the Applicant, M/s. Airbus Defence and Space SA, by this Authority under Section 98 (4) of the Central Goods and Services Tax Act, 2017 (CGST Act,2017) and the Gujarat Goods and Services Tax Act, 2017 (GGST Act, 2017).
AND WHEREAS, upon examination of the records, it is observed that a clerical error has inadvertently crept into the said Advance Ruling Order, which requires rectification under Section 102 of the CGST Act, 2017 and Section 102 of the GGST Act, 2017.
NOW THEREFORE, the Authority hereby issues the following corrections to be read as part of the original Advance Ruling Order No. GUJ/GAAR/R/2026/34 dated 11/09/2026:
In Page No. 1, in the table containing details of the applicant’s Name and Address:
FOR: “M/s. Airbus Group India Pvt. Ltd.
Plot No.509-510, Udyog Vihar, Phase-3, Sector-20, Gurugram-122008, Haryana.”
READ: “Airbus Defence and Space SA C/o Dhruva Advisors India Pvt Ltd. 1101, One World Centre, Tower 2B, Elphinstone Road, Worli, Mumbai 400020”
| Particulars | As per Original Order | As per Rectification Order |
|---|---|---|
| Name and address of the applicant | M/s. Airbus Group India Pvt. Ltd. Plot No.509-510, Udyog Vihar, Phase-3, Sector-20, Gurugram-122008, Haryana. | Airbus Defence and Space SA C/o Dhruva Advisors India Pvt Ltd. 1101, One World Centre, Tower 2B, Elphinstone Road, Worli, Mumbai 400020 |
IT IS FURTHER CLARIFIED that all other contents, interpretations, classifications, and rulings pronounced in the said order remain unchanged and shall continue to hold full legal validity as originally issued.
