How to avail Input Tax Credit of GST on Airline Bills

[Guest]

We are a manufacturer of goods and for the business purpose we often use Airline Services for business travelling. Some Airlines use word K3 Tax for GST amount. Now the question is how can we get ITC of such GST amount where as it is not confirmed that whether it is CGST & SGST or IGST. What is the current practice which others are following in the new GST regime? how they are getting Invoices?

Pls. Advice

[PAWAN KUMAR]

Dear Sir,

K3 tax code is used for tax charged on airline invoice. Place of supply will be the schedule point of departure of Air Flight and the Location from where you are getting tickets.

So if you take an ticket booking from the counter at Delhi Airport and your schedule point of departure is also Delhi, The transaction will be intrastate and K3 charged on ticket will be portion of CGST+SGST as per my view.

[CSSANJAY MALHOTRA]

Mr. Joshi, for passenger transportation, Please refer to provisions as stated in Sec 12(9) and Sec 13(10) of IGST Act. Sec 12 is applicable if both service receiver / provider based in India or else Sec 13(10) is applicable. K3 code is single tax code used by Airlines. Indian Airlines are stating IGST or CGST+SGST on Invoice for domestic transportation and IATA uses K3 code in its Invoices. Furthermore, you will get the ITC reflected in your GSTR-2A/2.

Sec 12(9) of IGST Act: The place of supply of passenger transportation service to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:

Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in accordance with the provisions of sub-section (2).

Explanation.––For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.

Sec 13(10) of IGST Act : The place of supply in respect of passenger transportation services shall be the place where the passenger embarks on the conveyance for a continuous journey.

AI Summary

Can Input Tax Credit be Claimed on GST for Airline Bills? Refer to IGST Act Sections 12(9) & 13(10). A manufacturer inquired about availing Input Tax Credit (ITC) on GST for airline bills, specifically regarding the K3 tax code used by airlines. One response clarified that K3 represents the tax charged on airline invoices, with the place of supply being the departure location, affecting whether it is CGST+SGST or IGST. Another response advised referring to Sections 12(9) and 13(10) of the IGST Act for passenger transportation services, explaining that the place of supply depends on the embarkation point. It was noted that Indian Airlines specify IGST or CGST+SGST on invoices, and ITC appears in GSTR-2A/2.