5% GST Applicable on Airbus supply, support services by Tata: AAR:

5% GST Applicable on Airbus supply, support services by Tata: AAR The Gujarat Authority of Advance Ruling (AAR, Gujarat) in the matter of Tata Advanced Systems Ltd held that 5% GST is Applicable to Airbus supply and support services by Tata. The company viz. M/s. Tata Advanced Systems Ltd, 5th floor, No.521, Loha Bhavan, Old High Court Lane, Navrangpura, Ahmedabad, Gujarat-380009 [for short applicant] is engaged in the business of assembly, manufacture, and supply of aircraft and their GST registration number is 24AACCT5245K1Z9. Questions and Rulings are Stated: Question: 1. What is the nature of supply under the contract between the applicant and Airbus (i.e. whether the same will qualify as 'supply of goods' or 'supply of service')? 2. Given the nature of the activities undertaken by the applicant under the contract, what will be the appropriate classification and rate of tax for the said supply? 3. What is the value to be adopted for the purpose of payment of GST? 4. What will be the time of supply for payment of GST? Ruling: 1. The nature of supply under the contract between the Applicant and Airbus is a composite supply in terms of Section 8 of the CGST Act, 2017 wherein the principal supply of aircraft (i.e.,' supply of goods'). 2. The aircraft are classable under CTH 8802 and will attract GST @ 5% in terms of notification No. 1/2017 (Rate) dated 28.06.2017 (entry no. 244). 3. The value to be adopted for the purpose of payment of GST will include the supply made free of cost by Airbus i.e. will include the value FIMs also. 4. The time of supply for payment of GST will be in terms of Section 12 of the CGST Act 2017. For Official Ruling Download the PDF Given Below: