GST on airport levies: Airlines collecting PSF and UDF as pure agents exclude those charges from their taxable value. PSF and UDF charged by airport operators constitute consideration for services to passengers and are liable to GST. Airlines that collect these levies as a pure agent must separately indicate the actual amounts and the GST payable by the airport operator; such amounts are excluded from the value of the airline's supply and the airline is not liable to pay GST on them. Airport operators remain liable to account for GST on PSF and UDF; collection charges paid to airlines are taxable in the hands of the airlines.
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Provisions expressly mentioned in the judgment/order text.
GST on airport levies: Airlines collecting PSF and UDF as pure agents exclude those charges from their taxable value.
PSF and UDF charged by airport operators constitute consideration for services to passengers and are liable to GST. Airlines that collect these levies as a pure agent must separately indicate the actual amounts and the GST payable by the airport operator; such amounts are excluded from the value of the airline's supply and the airline is not liable to pay GST on them. Airport operators remain liable to account for GST on PSF and UDF; collection charges paid to airlines are taxable in the hands of the airlines.
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