Applicability of GST on inter-state transfer of aircraft engines

Raju Choudhary

Administrator
Staff member
#1
Applicability of GST on inter-state transfer of aircraft engines, parts and accessories for use by their own airlines. Under Schedule I of the CGST Act, supply of goods or services or both between related persons or between distinct persons as specified in Section 25, when made in the course or furtherance of business, even if, without consideration, attracts GST.

It was clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter–state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act, notwithstanding that credit of input tax charged on consumption of such goods is not allowed for supply of service of transport of passengers by air in economy class at GST rate of 5%.

This was clarified by the Circular no. 16/16/2017-GST dated 15th November 2017
 
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