Leasing of Aircraft 9973 5% vs 9966 18% GST

[Abhijeet Mane]

The Company provides aircraft charter services along with pilots and crew. The Company classified the service under SAC 9973 and charged GST at 5%.

The Department has taken the view that the service should fall under SAC 9966, taxable at 18%, instead of 5%.

Please provide your view along with any judgment if any.

[Sadanand Bulbule]

In Circular No. 234/28/2024-GST dated 11.10.2024, based on recommendations of the 54th GST Council meeting, CBIC clarified that:

Passenger transport by helicopter on a seat-share basis is taxable at 5% (regularized for past period).

Transport of passengers by helicopter on other than seat-share basis i.e., charter operations will continue to attract GST at 18%

[Shilpi Jain]

See issue 120773

AI Summary

GST classification of helicopter passenger transport: seat-share attracts a lower rate while charter operations attract a higher rate. Dispute whether aircraft passenger transport with pilots and crew should be taxed under a lower-rated classification applicable to seat-share helicopter passenger transport or under a higher-rated classification for charter operations. CBIC Circular No. 234/28/2024 clarifies that seat-share helicopter passenger transport is taxable at the lower rate (regularized retrospectively), while non-seat-share charter operations attract the higher rate.