GST treatment of airport levies: airport operators liable for GST; airlines may exclude levy amounts if acting as pure agents. PSF and UDF charged by airport operators are consideration for services to passengers and attract GST. Airlines collecting these levies act as agents; if they satisfy Rule 33's pure agent conditions and separately indicate the actual amounts and GST in invoices, those amounts are excluded from the airline's value of supply. The airport licensee remains liable to pay GST on PSF and UDF, airlines cannot claim ITC on such amounts, passengers may claim ITC on the basis of the pure agent invoice, and collection charges paid to airlines are taxable in the airlines' hands.
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 treatment of airport levies: airport operators liable for GST; airlines may exclude levy amounts if acting as pure agents.
PSF and UDF charged by airport operators are consideration for services to passengers and attract GST. Airlines collecting these levies act as agents; if they satisfy Rule 33's pure agent conditions and separately indicate the actual amounts and GST in invoices, those amounts are excluded from the airline's value of supply. The airport licensee remains liable to pay GST on PSF and UDF, airlines cannot claim ITC on such amounts, passengers may claim ITC on the basis of the pure agent invoice, and collection charges paid to airlines are taxable in the airlines' hands.
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