TaxTMI 
TaxTMI 
2020 (1) TMI 1384
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....the Company is located. The Company is essentially engaged in the provision of scheduled passenger transport services by air and cargo services for transportation of goods by air. 1.2 That the Company procures various goods/ services directly used for air transportation services (including passenger and cargo) for all other States at its corporate office Haryana (hereinafter referred to as "HO") under the GSTN of Haryana (Bill to Location) and while the goods are delivered at the respective locations (hereinafter referred to as "BO"), which inter-alia includes the following: a) Services in the nature of lease of aircraft b) Services in the nature of assurance for aircraft repair c) Spares for aircrafts d) Any other cost related to ....
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....the HO as the said aircrafts along with the spares therein are used at multiple locations at any given point of time for e.g., An aircraft in a day may fly from Delhi to Mumbai, then from Mumbai to Ahmedabad, then Ahmedabad to Kolkata and then Kolkata to Delhi. 1.5 That in view of the above, the HO has entered into an agreement such that aircrafts are up and running condition (at all point of time) with its BO's. The said service includes carrying out preventive and routine maintenance, to check safety controls including supply of parts/consumables. The very intention is to provide the maintenance services i.e. upkeep the aircraft and as supply of parts follows as a part and parcel of providing the maintenance service comprehensively. The ....
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....HO to BO comes under the purview of supply of services. Therefore, it is pertinent to discuss about the relevant provisions of 'supply'. 3.1.1 Sub section (1) of Section 7 of the CGST Act which is related to the scope of supply clearly states as under: (1) For the purposes of this Act, the expression "supply" includes (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a considerati....
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....d to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act" 3.6 That on the basis of Section 25 (5) of the CGST Act, the applicant opined that the HO and BO, being two separate GST registrations, qualify as distinct persons under the GST regime. Hence, basis entry 2 of Schedule I of the CGST Act, any supply of goods or services from the HO to BO would be covered in the scope of supply and trigger a levy of GST. 3.7 It is irrelevant to admit that the said charge towards maintenance of aircrafts from HO to BO is merely an internal MIS entry and shou....
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....used for air transportation services (including passenger and cargo) for all other sates at its corporate office Haryana ("HO") under the GSTN of Haryana (Bill to Location) and while the goods are delivered at the respective locations ("BO"), which inter-alia includes the following: (i) Services in the nature of lease of aircraft; (ii) Services in the nature of assurance for aircraft repair; (iii) Spares for aircrafts; and (iv) Any other cost related to upkeep and maintenance of aircraft incurred by the HO 3.12 Now, to decide the method of distribution of input tax credit from HO to BO, it is pertinent to discuss the relevant provisions regarding 'input service distributor'. The term 'input service distributor' is defined under sec....