TaxTMI 
TaxTMI 
2026 (8) TMI 1841
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....thority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like manner except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant, Biman Bangladesh Airlines Limited, is an international air travel company operating exclusively international flights with branch offices in Kolkata, Delhi and Chennai in India and does not provide any domestic flight services within India. The applicant provides international passenger air transportation involving journeys from outside India to India, from India to foreign countries and continuous journeys between India and foreign countries or between two foreign countries with transit st....
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....erates exclusively as an international airline through its branch offices located in Kolkata, Delhi and Chennai and does not operate any domestic flight services within India. Being engaged in international air transportation involving cross-border passenger movement, the Applicant submits that uncertainty arises regarding the correct GST treatment under the Integrated Goods and Services Tax Act, 2017, the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017 in respect of different scenarios of international carriage. The Applicant has therefore approached this Authority seeking determination of the GST treatment and liability applicable to such transactions. Primarily, they raised five questions in their application before the WBAAR. Subsequently, they added another question (Question No. 6) in their written submission before the Authority during the personal hearing. 2.2 The Applicant submits that the determination of the place of supply is fundamental to deciding the taxability of passenger transportation services. Section 12(9) of the IGST Act, 2017 governs the place of supply of passenger transportation services where both the suppli....
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....Passenger air transport services - international 996423 Passenger charter air transport services 2.7 In respect of the first question, concerning a passenger boarding from outside India and travelling to India, such as Dhaka, Bangladesh to Kolkata, India, the Applicant submits that the place of embarkation is outside India, namely Dhaka, and the service is rendered from a foreign location. Accordingly, the place of supply is outside India, being the place of embarkation. Since the place of supply is outside India, the Applicant contends that the transaction does not fall within the ambit of GST and no IGST, CGST or SGST is leviable in India. 2.8 The Applicant further submits that tickets issued for such journeys are already subject to taxes in Bangladesh, including Embarkation Fee (BD), Travel Tax (UT), Excise Duty Tax (OW), Passenger Security Fee (P8) and VAT on Embarkation Fee (E5), as evidenced by sample tickets filed with the application. According to the Applicant, levy of Indian GST on the same transaction would amount to double taxation of an identical international supply and would be inconsistent with general principles of international taxation. The Applicant ....
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....hat the passenger holds a single ticket commencing from Kolkata, transiting through Dhaka and terminating at London. The first point of embarkation is Kolkata, which is within India. According to the Applicant, Section 12(9) of the IGST Act, 2017 provides that for a continuous journey evidenced by a single ticket, the place of supply is determined with reference to the first point of embarkation, which in this case is Kolkata, West Bengal. The Applicant accordingly submits that the entire journey under the single ticket is treated as a supply made from Kolkata. Since the point of embarkation is situated within West Bengal, according to the Applicant, CGST and SGST would be applicable on the Indian leg, namely Kolkata to Dhaka, while the transaction may qualify as export of services, subject to the ruling of this Authority. The Applicant has classified the service under SAC 996422, namely international passenger air transport services. 2.12 In respect of the fifth question relating to a continuous journey under a single ticket from one foreign country to another foreign country with a transit stop in India, such as Dhaka to London via Kolkata, the Applicant submits that the passe....
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....enger transportation services where the passenger embarks from outside India and travels to India, where the passenger embarks from India and travels to a foreign country, continuous journeys under a single ticket from a foreign country to India, continuous journeys from India to a foreign country, continuous journeys between two foreign countries involving a transit stop in India and transportation of human remains by air from outside India to India and from India to outside India. 3. Submission of the Revenue 3.1 The concerned officer from the Revenue has submitted that the applicant, through its registered branch in West Bengal, is engaged in providing international passenger air transportation services. According to the Revenue, the taxability of such services is required to be determined with reference to the location of the supplier and recipient and the place of supply as prescribed under sections 12 and 13 of the Integrated Goods and Services Tax Act, 2017. 3.2 In respect of a journey where a passenger embarks from a place outside India and travels to India, for example, Dhaka to Kolkata, the Revenue has submitted that the place of supply would be the place where t....
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....us journey in terms of section 13(10) of the IGST Act. Since the passenger embarks outside India, the place of supply would be outside India. The Revenue has treated such transactions as inter-State supplies and has expressed the view that no GST would be payable thereon. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representatives of the applicant during personal hearing. We have also considered the submission made by the officer concerned from the revenue. 4.2 As per the facts submitted before us, the applicant is an international air travel company with operations in India through its branch offices in Kolkata, Delhi and Chennai. The applicant operates exclusively international flights and it does not offer any domestic services within India. In other words, the passengers using the applicant's flight services either board from India and go to abroad or board from abroad and come to India. Sometimes passengers board flight from outside India and go to destination outside India with a transit stop in India. 4.3 Under these circumstances, the applicant seeks an advance ruling....
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....• Since both supplier and recipient are located in India, Section 12 of the IGST Act is applicable. • Place of Supply: • If the passenger is a registered person → Location of such registered recipient [Section 12(9)(a)]. • If the passenger is an unregistered person → Place where the passenger embarks i.e. Kolkata, West Bengal [Section 12(9)(b)]. • Nature of Supply: Intra-State supply under Section 8 of the IGST Act (supplier and place of supply both in West Bengal). • GST Liability: CGST + SGST at the applicable rate. 3. Passengers on continuous journey with single ticket: Foreign country → India (with transit stop in Dhaka) Example: London (LHR) → Dhaka (transit) → Kolkata (CCU) • Place of Supply: Section 13(10) - Place where the passenger embarks for the continuous journey i.e. London (outside India). • Nature of Supply: Inter-State supply under Section 7 of the IGST Act. • GST Liability: No GST is levied 4. Passengers on continuous journey with single ticket: India → Foreign country (with transit stop in Dhaka) ....
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....n 4.6 As per our understanding, the underlying issues in all the circumstances referred to in the present application for advance ruling are the place of supply and liability of the applicant to pay tax for each circumstance under the GST regime. In all the cases except the last one i.e. transportation of human remains, are related to transportation of passengers. So, our discussion will encompass these two issues viz. place of supply and liability of tax of the circumstances raised in the application under the provisions of the GST Acts. Before going into the discussion, let us clarify certain issues and concepts which are integrally related to the questions raised in the application. Embarkation: This term finds reference in Section 12(9) of the Integrated Goods and Services Tax Act, 2017 (in short, the IGST Act, 2017). This term has not been defined in the Act. However, in the context of air transport of passengers, the term embarkation refers to the process of passengers getting onto an aircraft in order to start a journey. Legally, the embarkation process begins the moment a passenger enters the immediate airport areas dedicated to the flight (such as passing through the....
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....application. The GST Act does not define the term. However, in the context of air transport of passengers, a transit stop is an intermediate landing where the aircraft briefly stops to refuel, pick up new passengers, or drop off existing ones. Passengers continuing to the final destination either remain on the same aircraft or wait in a transit area before continuing the journey. Conceptually, 'stopover' and 'transit stop' are not the same thing so far as air transport of passengers is concerned. Usually, a transit stop lasts an hour or two, while a stopover involves 24 hours or longer. In a transit stop, passengers fly on the same aircraft from the point of embarkation to the final destination, with the aircraft briefly stopping in between to refuel, pick up new passengers, or drop off existing ones. In a stopover, however, there is a change of aircraft, and there may even be a change of airlines. Luggage of the passenger remains on the same aircraft in respect of a transit stop. In case of a stopover, luggage is either to be collected by the passenger or transhipped to a new aircraft. During a transit stop, the passenger stays in the transit area of the airport and is not perm....
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.... of the supplier and the recipient is in India and under Section 13(10) where the location of the supplier or the location of the recipient is outside India. The relevant provisions of Sections 12 and 13 are reproduced as under: 12. (1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India. (2) The place of supply of services, except the services specified in sub-sections (3) to (14),-- (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be,-- (i) the location of the recipient where the address on record exists; and (ii) the location of the supplier of services in other cases. (3) ********************* (4) ********************* (5) ********************* (6) ********************* (7) ********************* (8) ********************* (9) The place of supply of passenger transportation service to,- (a) a registered person, shall be the location of suc....
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....oarding from India for a flight to abroad Here the case is that the passenger boards a Dhaka-bound flight from Kolkata. Clearly, the location of the supplier (the applicant) and the recipient (the passenger) of the service is in West Bengal, India, and the place of embarkation is also in West Bengal, India. As per the provisions of Section 12(9) of the IGST Act, 2017, the place of supply is the location from where the passenger embarks on the aircraft, i.e. Kolkata. Since the location of the supplier and the place of supply of services are in the same state, it will be treated as an intra-state supply as per the provisions of section 8(2) of the IGST Act, 2017, and accordingly CGST and WBGST at the appropriate rate will be applied in this case. To determine the tax to be charged in the above case, we refer to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended. The tax rate in this case will be as under: (A) 2.5% CGST + 2.5% SGST under item no. (iii) of serial no. 8 of the table in Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended on the condition that credit of input tax charged on goods used in supplying the service has not....
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....upplier and the place of supply of services are in the same state, it will be treated as an intra-state supply under Section 8(2) of the IGST Act, 2017. Accordingly, CGST and WBGST at the appropriate rate will apply in this case. The tax rate in this case will be as under: (A) 2.5% CGST + 2.5% SGST under item no. (iii) of serial no. 8 of the table in Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended on the condition that credit of input tax charged on goods used in supplying the service has not been taken, as explained in Explanation no. (iv) of the notification ibid in case the passenger travels in economy class (B) 9% CGST + 9% SGST under item no. (v) of serial no. 8 of the table in Notification no. 11/2017- Central Tax (Rate) Dated 28.06.2017, as amended in case the passenger travels in any class other than economy class. Passengers on continuous journey with a single ticket from a foreign country to another foreign country with a stop in India In this case, the passenger begins the journey from Dhaka, and his destination is London. In between, there is a short transit stop at Kolkata. The applicant's representative submits that....
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.... obstante clause. This sub-section reads as under: (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. Schedule III appended to the CGST Act, 2017 specifies 'Activities or transactions which shall be treated neither as a supply of goods nor a supply of services'. Clause 4 of this Schedule refers to 'Services of funeral, burial, crematorium or mortuary including transportation of the deceased'. The services mentioned in Clause 4 are all related to the services offered to a person after he/she passes away. It inter alia includes transportation of the deceased. Since transportation of the deceased is neither a supply of goods nor a supply of services, it does not come under the ambit of Section 7(1) of the CGST Act, 2017 and hence there is no question of any tax being imp....