GST liability on airport levies: airport operators taxed; airlines may act as pure agents and exclude levies from supply value. PSF and UDF charged by airport operators are consideration for passenger services and liable to GST; airlines collecting those levies act as agents and, if meeting Rule 33 pure agent conditions, must separately indicate and exclude such amounts (and the GST payable thereon by the airport operator) from the value of the airline's supply, cannot claim ITC on that GST, while passengers may claim ITC based on the pure agent invoice; collection charges to airlines are taxable to airlines and ITCable to airport operators.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST liability on airport levies: airport operators taxed; airlines may act as pure agents and exclude levies from supply value.
PSF and UDF charged by airport operators are consideration for passenger services and liable to GST; airlines collecting those levies act as agents and, if meeting Rule 33 pure agent conditions, must separately indicate and exclude such amounts (and the GST payable thereon by the airport operator) from the value of the airline's supply, cannot claim ITC on that GST, while passengers may claim ITC based on the pure agent invoice; collection charges to airlines are taxable to airlines and ITCable to airport operators.
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