GST on airport levies: PSF and UDF are taxable; airlines may collect as pure agents while airport operators remain GST liable. PSF and UDF charged by airport operators constitute consideration for airport services and are taxable under GST. Airlines that collect these charges act as agents; where they meet Rule 33 criteria and separately show the amounts and GST, the recovered PSF/UDF (and GST thereon) are excluded from the airline's taxable value and the airline cannot claim ITC. Airport operators are liable to pay GST on PSF/UDF; airlines must pay GST on collection charges received from airport operators, with ITC available to the 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 on airport levies: PSF and UDF are taxable; airlines may collect as pure agents while airport operators remain GST liable.
PSF and UDF charged by airport operators constitute consideration for airport services and are taxable under GST. Airlines that collect these charges act as agents; where they meet Rule 33 criteria and separately show the amounts and GST, the recovered PSF/UDF (and GST thereon) are excluded from the airline's taxable value and the airline cannot claim ITC. Airport operators are liable to pay GST on PSF/UDF; airlines must pay GST on collection charges received from airport operators, with ITC available to the airport operators.
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