9911796707
TMI BlogClarification on issue of GST on Airport leviesX X X X Extracts X X X X X X X X Extracts X X X X ..... f its powers conferred by section 168(1) of the Jharkhand Goods and Services Tax Act, 2017 (hereinafter referred to as the JGST Act ), hereby clarifies the issues in the succeeding paras. 2. Passenger Service Fee (PSF) is charged under rule 88 of the Aircraft Rules, 1937 according to which the airport licensee may collect PSF from embarking passengers at such rates as specified by the Central Government. According to the rule the airport license shall utilize the said fee for infrastructure and facilitation of the passengers. User Development Fee (UDF) is levied under rule 89 of the Aircraft Rules, 1937, which provides that the licensee may levy and collect, at a major airport, the user development fee at such rate as may be determined unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether by the recipient or by any other person. Thus, PSF and UDF charged by airport operators are consideration for providing services to passengers. 2.5 Thus, services provided by an airport operator to passengers against consideration in the form of UDF and PSF are liable to GST. UDF was also liable to service tax. It is also clear from notification of Director General of Civil Aviation AIC Sl. No. 5/2010, dated September 13, 2010, which states that UDF approved by MoCA, GoI is inclusive of service tax. It is also seen from the Air India website that the UDF is inclusive of service tax. Further in order No. AIC S. Nos. 3/2018 and 4/2018, both dated February 27, 2018, it has been laid down that GST is applicable on the charges of UDF and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to incur expenditure or costs in the course of supply of goods or services or both ; (b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply ; (c) does not use for his own interest such goods or services so procured ; and (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. 2.8 Accordingly, the airline acting as pure agent of the passenger should separately indicate actual amount of PSF and UDF and GST payable on such PSF and UDF by the airport licensee, in the invoice issued by airlines to its passengers. The airline shall not take ITC of GST pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
