The Gujarat Authority of Advance Ruling (AAR) held that transfer of business by the Airport Authority of India (AAI) to Adani Ahmedabad International Airport Limited be treated as Supply of Service, exempted from GST.
The applicant, M/s. Airport Authority of India is an authority created under the Airport Authority of India Act, 1994. The 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 purpose of establishing or assisting in the establishment of airports and for the matters connected thereto.
As per Chapter III, Section 12(1), (2) of AAI Act, the functions of the AAI is to manage the airports, the civil enclaves and the aeronautical communication stations efficiently; and to provide air traffic service and air transport service at any airport.
The applicants sought the advance ruling on the issue of whether the transfer of business by the AAI to the M/s. Adani Ahmedabad International Airport Limited be treated as Supply u/s. 7 of the Central Goods and Service Tax Act, 2017 viz-a-viz Gujarat State Goods and Service Tax Act, 2017; whether the transfer of business by AAI to M/s. Adani Ahmedabad International Airport Limited is treated as supply as going concern and covered in clause 4 of schedule II of CGST Act viz-a-viz GSGST and Whether the transfer of business by AAI to M/s. Adani Ahmedabad 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.
The coram of Arun Saxena and Arun Richard held that the Subject Supply of ‘Transfer of Going Concern service’ is Supply under Section 7 CGST Act. The subject Supply is ‘Transfer of Going Concern Service’.Schedule II (4) CGST Act refers to activities or transactions relating to Transfer of business assets to be treated as supply of goods or supply of services. Therefore, in the present case, there arises no need to examine Schedule II(4) CGST Act.Subscribe Taxscan AdFree to view the Judgment