In re Airports Authority of India (GST AAR Rajasthan)
Q.1 Whether the transfer of business by the Airport Authority of India to the M/s. Adani Jaipur International Airport Limited be treated as Supply u/s. 7 of the Central Goods and Service Tax Act, 2017 (CGST), viz-a-viz Rajasthan State Goods and Service Tax Act, 2017 (RSGST) ?
Ans.1 The Subject Supply of “Transfer of Going Concern service” is Supply under Section 7 CGST Act, 2017.
Q.2. Whether the transfer of business by Airports Authority of India to M/s. Adani Jaipur International Airport Limited is treated as supply as going concern and covered in clause 4 of schedule II of CGST Act viz-a-viz RSGST?
Ans.2 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 RGST.
Q.3. Whether the transfer of business by M/s. Airports Authority of India to M/s. Adani Jaipur 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?
Ans.3. The subject Supply is covered at Entry No. 2 of Notification 12/2017-CT(R).
Q.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 Jaipur International Airport Limited?
Ans.4. Ruling not required, in pursuance to Ruling at serial no 3.
Q.5. Whether the aforesaid transfer of asset be treated as services and the classification for the same?
Ans.5. Ruling not required, in pursuance to Rulings at serial no 2 & 3
Q.6. Whether the concession fees paid by M/s. Adani Jaipur International Airport Limited to M/s. Airports Authority of India be treated as consideration for transfer of business?
Ans.6. Concession Fee is a part of the Consideration paid by SPV to AAI in subject matter
Q.7. Whether GST is applicable on Monthly/Annual concession fees charged by the Applicant on the M/s. Adani Jaipur International Airport Limited? If Yes, What rate?
Ans.7. The consideration for the subject Supply is exempt from GST vide Entry No. 2 of Notification 12/2017-CT( R) dated 28-6-2017
Q.8. Whether GST is leviable on the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Jaipur International Airport Limited? If yes, at what rate ?
Ans.8. Yes, at the rate of 18% (9 % CGST and 9% SGST)
Q.9. Whether GST is applicable on the reimbursement claimed of Municipal tax, Property Tax and Water Charges by the Applicant from M/s. Adani Jaipur International Airport Limited? If yes, at what rate?
Ans.9. No
Q.10. Whether any reversal is required in accordance with section 17 (2)/ (3) of CGST Act viz-a-viz RGST Act?
Ans.10. Yes
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s Airports Authority of India, Civil Airport Road, Sanganer, Jaipur-302011, Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (b), (e) & (g) given as under:
(b) Applicability of a notification issued under the provisions of this Act
(e) Determination of the liability to pay tax on any goods or services or both.
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
A.SUBMISSION OF THE APPLICANT: (in brief)
> 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. AAI has been created for the purposes of establishing or assisting in the establishment of the airports and for matters connected thereto.
> As per Chapter III, Section 12 (1) & (2) of AAI Act, the functions of the AAI are:
