Adani Group Chairman Gautam Adani. File.
| Photo Credit: PTI
The transfer of Jaipur international airport operations by Airports Authority of India (AAI) to the Adani group is exempt from Goods and Services Tax (GST), the Authority for Advance Ruling has mentioned.
The AAI had approached the Rajasthan-bench of the Authority for Advance Ruling (AAR) looking for ruling on whether or not transfer of business to M/s Adani Jaipur International Airport Ltd is handled as provide as ‘going concern’ and whether or not GST is leviable on transfer of property.
Transfer of business as a going concern, as a complete, or impartial half thereof, is taken into account as service beneath GST regulation and such provides are exempt from items and companies tax.
In its ruling dated March 20, 2023, the AAR mentioned the business association entered vide concession settlement dated January 16, 2021, between the applicant (AAI) and M/s Adani Jaipur International Airport is a transfer of going concern.
The Adani Group had in October, 2021, taken over the operations, administration and growth of the Jaipur International Airport from the AAI. The airport has been leased out to the group by the federal government of India for a interval of 50 years.
The Rajasthan bench of the AAR additionally famous that in 2021 and 2022, the Gujarat and Uttar Pradesh benches of AAR too had dominated that business preparations between AAI and Special Purpose Vehicle (SPV) are coated beneath transfer of going concern.
However, the bill raised by AAI for reimbursement of wage /employees value on M/s Adani Jaipur International Airport Ltd is a provide which falls beneath the ambit of manpower service and therefore taxable at 18% beneath GST.
AMRG & Associates Senior Partner Rajat Mohan mentioned the AAR has dominated that concerns acquired from transfer of working business of entire airport operations by Airport Authority of India is tax impartial provide.
“This ruling will have strong persuasive for any other similar transfers by AAI in other locations of India,” Mohan mentioned .
