TaxTMI 
TaxTMI 
What would be the GST implications on renting of aircraft? What would be the place of supply for renting of aircraft? What would be the nature of services?
Renting of aircraft
25 Apr 2025 
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Place of supply for aircraft renting determines IGST or CGST/SGST, and recipient location prevents export classification.
Renting or leasing of aircraft falls under HSN 9973 and attracts GST as per the applicable schedule. The place of supply - determined by where the service is actually performed or where the aircraft is utilised - governs whether CGST/SGST or IGST applies. If the recipient is located in India the transaction does not qualify as an export of services, whereas use of the aircraft wholly outside India may place the supply outside taxable territory under the non taxable territory provision. (AI Summary)
Renting or leasing of aircraft falls under HSN 9973 and attracts GST as per the applicable schedule. The place of supply - determined by where the service is actually performed or where the aircraft is utilised - governs whether CGST/SGST or IGST applies. If the recipient is located in India the transaction does not qualify as an export of services, whereas use of the aircraft wholly outside India may place the supply outside taxable territory under the non taxable territory provision. (AI Summary)