In re Global Vectra Helicorp ltd. (GST AAR Gujarat)
In terms of the valuation provisions under GST legislation, amount recovered as reimbursement (at actual) by the applicant M/s. Global Vectra Helicorp ltd. from the customer, for the fuel procured on behalf of the Customer is required to be included in the value of services provided by the Applicant.
Read AAAR Ruling : GST applies on reimbursement of fuel procured for use in helicopter provided on rent
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
The applicant M/s. Global Vectra Helicorp ltd. vide their application for Advance Ruling has submitted that they are having their registered office at A-54, Kailash Colony, New Delhi-110048 and GST registered office at Airports Authority of India, NH 8B, Porbandar Airport, Porbandar, Gujarat-360575. They have submitted that they hold a Non-scheduled Operators Permit (NSOP) (No.8/1998) issued by the Directorate General of Civil Aviation (hereinafter referred to as the ‘DGCA’). It employs a fleet of around 30 helicopters (aircrafts) for providing services classifiable under HSN 996603 i.e. Rental services of aircraft including passenger aircrafts, freight aircrafts, and the like with or without operator) in terms of Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 (Charter Hire Services). Under the charter hire services entered into by the applicant with various customers, the applicant is responsible for operating and maintaining the aircrafts. The applicant employs experienced and qualified pilots and qualified engineering crew in accordance with aviation standards and ensures that the Aircrafts are available and fully operational during the term of the contract. Aviation Turbine Fuel (ATF) is required for flying the Aircrafts. While in terms of the contracts, the applicant agreed to provide rental services of aircraft (with or without operator) in respect of the ATF, it was agreed that provision of the same for the purpose of flying of the aircrafts would be the responsibility of the Customers. However, at locations where the customer is unable to provide the fuel, in order to ensure continuity of flying, the contract requires GVHL to procure the fuel on behalf of the Customer and subsequently the cost of the fuel is reimbursed by Customer at actual (without charging any mark-up). GVHL undertakes the activity of procurement of fuel as a ‘pure agent’.
2. The applicant has mentioned the relevant clauses of Contract No.ONG/COL/HMM/CSR/AL/CH/HELICOPTER/ CREWCHANGE/09/2014/P7 6BC4008-GR-1 dated 31.07.2015 with M/s. Oil and Natural Gas Corporation ltd.(ONGC) as under:-
