Clarification on issue of GST on Airport levies

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....-9 the 31st Oct., 2019. Madam/Sir, Subject: Clarification on issue of GST on Airport levies - reg. Various doubts have arisen on issues relating to GST on airport levies and to clarify that airport levies do not form part of the value of services provided by the airlines and consequently no GST should be charged by airlines on airport levies. In order to ensure uniformity in the implementation of the provisions of law across the field formations, in exercise of powers conferred by section 168 of the Himachal Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "HPGST Act"), I hereby clarify the issues in the succeeding paras. 2. Passenger Service Fee (PSF) is charged under rule 88 of Aircraft Rules, 1937 according to whi....

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....ed on to the passengers in any manner. 2.3 The above facts clearly indicate that PSF and UDF are charged by airport operators for providing the services to passengers. 2.4 Section 2(31) of the HPGST Act states that "consideration" in relation to the supply of goods or services or both includes any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person. Thus, PSF and UDF charged by airport operators are consideration for providing services to passengers. 2.5 Thus, services provided by an airport operator to passengers against consideration in the form of UDF and PSF are liable to GST. UDF was....

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....ehalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and (iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account. "Pure agent" has been defined to mean a person who- (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; (c) does not use for his own interest such goods or servic....